November 9 2022

Bulgaria Proposes to Amend Tax Rules on Reusing Energy as per Energy Taxation Directive

Source: IBFD Tax Research Platform News

The Council of Ministers has submitted a proposal for amendments to the Excise Duties and Tax Warehouses Act (EDTWA) before the parliament. Among other things, it proposes the implementation of Art. 21(6)(b) of the Energy Taxation Directive (2003/96), which provides that Member States need not treat as "production of energy products" operations by which the user of an energy product makes its reuse possible in their own undertaking provided that the taxation already paid on such product is not less than the taxation which would be due if the reused energy product were again to be liable to taxation.

Additionally, the amendments also introduce:

  • an exemption from registration and reporting obligations for people who consume their own electricity produced from renewable energy sources for their own needs in a plant with a total installed capacity of up to 1 MW;
  • a clarification that persons who import or introduce compressed natural gas transported with specialized vessels are obliged to register under the EDTWA; and
  • an obligation for persons that import or receive various energy products from other EU member states to declare (before the customs authorities) whether these products are intended to be used as motor fuel or heating fuel.

As next steps, the proposal should be voted on at two readings by the parliament.

The full text of the proposal, issued on 31 October 2022, is available here (in Bulgarian only).