The current environmental tax reform introduced new environmental taxes into the Czech tax system effective from 1 January 2008. Taxation of electricity, natural gas, and solid fuels (i.e., energy products) is applied if the energy products are supplied by the supplier to final consumers or when untaxed or exempted energy products are consumed. Taxation of electricity, natural gas, and solid fuels places additional responsibilities particularly on manufacturers, suppliers, and some consumers of energy products.
Each person obliged to pay environmental tax has to comply with specific administrative obligations. On the other hand, there are new tax exemption possibilities. Although the legislation governing environmental taxes is relatively simple, it contains some provisions that may raise questions for taxpayers and which may be used for tax optimisation.
Scope and application of tax exemptions
Specification of tax exempt operations, elimination of tax exemption violations, utilisation of tax exemptions and assistance with tax exemption applications.
Processing and filing of tax returns, processing and filing of supplementary tax returns.
Many other technical aspects concerning environmental taxes and dealing with energy products could cause difficulties (e.g. determining the calorific value of solid fuels or the amount of effective heat when electricity is produced). We offer assistance with reducing financial risks and minimising the costs associated with environmental taxes.
Cross border transactions
Assistance with proving place of supply outside the Czech Republic.
Unusual methods of supply
Identification of the optimal system for handling energy products and determination of tax liability.
Fulfilment of administrative obligations
Advice on record keeping obligations, documentary obligations and administrative obligations.
Lead Partner, Tax and Legal Services, PwC Czech Republic
Tel: +420 602 749 934