Amendment to the Excise Tax Act

As of 1 January 2025, an amendment to the Excise Tax Act came into force, bringing with it a number of significant changes. The primary objective of the amendment was presented as an effort to streamline the process of collecting and administering excise taxes and to reduce the administrative burden where there is no risk of tax evasion.

One of the main changes introduced is a modification of the tax period for claiming a refund of excise tax on mineral oils used for heat production. The tax period will now be a calendar quarter (previously it was a month). There has also been a change in the deadline for filing this return. The new rule is that the return must be filed by the end of the third month following the end of the tax period (a reduction from the previous 6 months). If the return is not filed within this period, the right to a refund expires completely. The first period affected by this change will be January-March 2025, with a submission deadline of the end of June 2025.

In addition to the above changes, the amendment to the Excise Tax Act brought other changes, for example:

• Excise tax on cigarettes, smoking tobacco, cigars and cigarillos is increased again by 5%. There has been a 10% increase in the case of spirits.
• The special 6-month period for filing an additional tax return to reduce or increase the tax refund claim has been abolished. The new deadline is aligned with the deadline for adjustment to a higher tax liability, i.e. it is extended to three years. For environmental taxes, this 6-month period for filing an additional tax return for lower tax liability remains.
• The registration obligation for excise tax payers has been abolished. The existing registration obligation was considered redundant and administratively burdensome.
• The documents proving taxation can now be in electronic form.
• Farmers using the so-called “green diesel” can, under certain conditions, choose a calendar half-year tax period instead of the current calendar year. This change may improve cash flow under certain circumstances. 

The changes listed above are just a sample of some of the new features. If you need help with their implementation or are interested in further changes and information, we will be happy to assist you.