Energy Tax Rebate

General information

Energy-intensive production plants whose activity can be shown to consist primarily in the manufacture of goods can obtain reimbursement from the tax office for part of the energy taxes paid. Energy taxes are reimbursed per calender year (or business year) if they exceed 0.5 percent of the net production value and comply with the minimum levels of taxation set in the European Union Energy Tax Directive. The corresponding amount is reimbursed less a general deductible amount of 400 Euro by the tax office responsible for VAT.

Energy sources eligible for tax rebates

• Electrical energy as defined by the Elektrizitätsabgabegesetz
• Natural gas as defined by the Erdgasabgabegesetz
• Coal as defined by the Kohleabgabegesetz
• Mineral oil as defined by the Mineralölsteuergesetz (extra-light heating oil; light, medium and heavy heating oil), and liquefied gas

Exceptions from the rebate

Suppliers of natural gas, electrical energy, coal or mineral oil, as well as suppliers of heat derived from natural gas, electrical energy, coal or mineral oil, are not eligible for the rebate. Duties and taxes levied on energy sources used as fuel are also excluded, as are taxes for which rebates can be applied for in accordance with other legislation (such as the Erdgasabgabegesetz, Kohleabgabegesetz and Mineralölsteuergesetz). In addition, energy sources used to generate heat, steam or hot water are not eligible for the rebate unless they are used directly in a production process.

Amount of rebates

The levies on the respective energy sources shall be reimbursed upon application for a calender year (or business year) to the extent that they amount (in total) to 0.5 percent of the difference between

• the company's turnover within the meaning of Section 1 para. 1 (1) and (2) of the Umsatzsteuergesetz (UStG) and
• sales within the meaning of Section 1 para. 1 (1) and (2) UStG 1994 provided to the company

(net production value).

For these purposes, sales provided to the company also include sales associated with taxable turnover that would qualify as sales within the meaning of Section 1 para. 1 (1) and (2) UStG 1994, if they had been provided domestically. Sales from the provision of workers do not qualify as sales provided to the company.

The total rebate/compensation due is calculated subject to the limit of 0.5 percent of the net production value and to the following deductions, which serve to implement the minimum taxation due in accordance with the EU Energy Tax Directive (2003/96/EU):

• Electrical energy 0.0005 Euro/kWh
• Natural gas under sub-heading 2711 2100 of the Combined Nomenclature (CN) 0.00598 Euro/standard cubic metre
• Coal under headings 2701, 2702, 2704, 2713 and 2714 of the CN 0.15 Euro/gigajoule
• Extra-light heating oil (marked gas oil sub-heading 2710 19 41, 45, 49) 21 Euro/1,000 litres
• Light, medium and heavy heating oil (sub-heading 2710 19 61, 63, 65, 69) 15 Euro/1,000 kg
• Liquid gas (sub-heading 2711 12, 13, 14, 19) 7.50 Euro/1,000 kg

If the total of the calculated deductibles (minimum levels of taxation) amounts to more than 0.5 percent of the net production value, the deductibles are to be used when calculating the amount of the rebate. If the total of the calculated deductibles (minimum levels of taxation) amounts to less than 0.5 percent of the net production value, the rebate should be calculated on the basis of 0.5 percent of the net production value.

Additionally, a general deduction of (no more than) 400 Euro must be deducted from the amount of the rebate.

Example:

Net production value 200,000 Euro

When and where to apply for the rebate

You can apply for a rebate up to five years following the end of the calendar year in which the entitlement to the rebate arose. Applications must be made to the tax office responsible for collecting VAT. The application shall contain the amount of energy sources eligible for compensation consumed in the plant and the amounts used to calculate the net production value. The application is considered as a tax return and is to be settled with a decision.

Advance payments of energy tax rebates

Businesses with an entitlement to an energy tax rebate from the previous calendar year (or business year) can apply for an advance payment of 5 per cent of the total rebate from the previous calendar year (or business year) at the earliest together with the application for an energy tax rebate for the previous calendar year (or business year). For applications for advance payment for the calendar years 2022 to 2023 and deviating business years that begin or end in these calendar years, an advance payment in the amount of up to 25 percent of the rebate sum of the previous calendar year (business year) may be applied for on a temporary basis. This advance payment will be deducted from any rebate paid for the entire calendar year (or business year).

Legal bases

Bundesgesetz über die Vergütung von Energieabgaben (Energieabgabenvergütungsgesetz)

Forms

For your applications, please use the forms from the forms database (→ BMF)^{German text} of the Federal Ministry of Finance.