Introduction

Excise duty is levied in Poland on the consumption of the following goods: energy products, electricity, alcoholic beverages, tobacco products and raw tobacco. These goods are called excise goods. Excise duty like VAT is harmonized in the Europe Union. It means that part of European Union legislation should be implemented into Polish domestic law. Moreover, excise duty is also levied on motor cars however vehicles are not excise goods in Poland. Excise duty is collected by Polish customs administration.

Excise duty rates

Taxable base and rates of excise duty differ depending on the subject of taxation.

Rates may take the form of:

◦ fixed amount per one item or defined quantity of goods,

◦ percentage of taxable base

◦ percentage of maximum retail sale price

◦ fixed amount per item or quantity combined with percentage of maximum retail sale price

Currently excise duty rates amount in case of:

unleaded petrol – 1.540,00 PLN per 1.000 litres,

gas oil (propellant) – 1.171,00 PLN per 1.000 litres,

liquid petroleum gas (LPG) – 670,00 PLN per 1.000 kg

electricity – 20,00 PLN per MWh

ethyl alcohol - 5.704,00 PLN per hectolitre of pure alcohol

beer - 7,79 PLN per hectolitre/degree Plato of finished product

wine - 158,00 PLN per hectolitre of produkt

cigarettes – 206,76 PLN per 1.000 pieces and 31,41% TIRSP (tax included retail selling price)

cars with engine of cylinder capacity above 2000 cm3 – 18,6 % of taxable base and the other cars - 3,1% taxable base.

Duty suspension arrangement

Duty suspension arrangement is a tax arrangement which is applied during the production, processing, holding or movement of excise goods, under which no tax liability arises where conditions specified in the relevant provisions are met. Such institutions as authorised warehousekeeper, registered consignee, registered consignor and tax warehouse are strictly connected with that arrangement.

Registered consignee is authorised to acquire excise goods (once or in a permanent manner) from another Member State under a duty-suspension arrangement in the course of his business.

Registered consignor is an entity authorised to dispatch excise goods imported from the place of importation under a duty suspension arrangement in the course of his business.

Tax warehouse is a place where excise goods are produced, processed, held, received or dispatched under duty suspension arrangement.

A movement of excise goods shall be considered to take place under a duty suspension arrangement only if it takes place under cover of an electronic administrative document processed in accordance with the provisions of the Act on Excise Duty.