When the registration as a payer of the excise duty on electricity is required?

The obligation to register as an excise duty on electricity payer applies, besides others, to entities that produce electricity using photovoltaic panels. However, an exception to the obligation to register is made for those entities which produce electricity in installations with a total installed capacity of up to 10 kW, which are not subject to the obligation to register under certain conditions. However, if you have already installed photovoltaic panels with a capacity of more than 10 kW, you are obliged to register as an excise duty on electricity payer with the local tax authority, which is the customs office based on your company's location. To avoid penalties, you should register before the photovoltaic system becomes operational.

Arising of tax obligation and exemptions from the excise duty on electricity

Tax obligation related to the excise duty may arise in various situations, such as:

• Supplying electricity to the end consumer in Slovakia,
• Self-consumption of produced electricity in Slovakia,
• Unauthorized electricity consumption, etc.

Even if you are required to register as an excise duty on electricity payer, this does not automatically mean you will have an excise duty liability. Legislation provides various exemptions from excise duty, such as electricity production from renewable sources verified by a guarantee of origin.

A disposition with the guarantee of origin is one of the requirements to claim the excise duty exemption. It is issued electronically by the Short-Term Electricity Market Operator (OKTE, a.s.). Please note, that a declaration of electricity origin from your supplier is not sufficient for excise duty exemption. The declaration of electricity origin from your supplier is determined only for informational purposes and it is not accepted by the tax authorities to claim the exemption.

To obtain a guarantee of origin, you need to open an account in OKTE's information system. Account maintenance and issuance of the guarantee are subject to fees. Therefore, it is advisable to consider the economic benefits relative to the mandatory fees before opening an account and claiming the exemption. In fact, it can easily happen that what you save on excise duty, you will pay for the maintenance of the account and the issuance of guarantees of origin from OKTE. It is also possible to demonstrate electricity production with a guarantee of origin and request a refund of the excise duty already paid retroactively.

Obligations of an excise duty on electricity payer

If you become a registered excise duty on electricity payer, you have several obligations, including:

• Informing your electricity supplier that you are a registered excise duty payer before your first electricity purchase (if you also purchase electricity from a supplier). The supplier will then invoice the electricity without excise duty, and you will need to declare and pay the excise duty yourself through a tax return.
• Submitting monthly tax returns, no later than the 25th day of the month following the month in which the tax obligation arose.
• Paying the excise duty calculated in the submitted tax return by the tax return submission deadline.
• Keeping records of the amount of electricity purchased, consumed, produced, supplied, and used for own consumption or electricity production, among other things.

In case your monthly excise duty obligation does not exceed 5 euros, you are not required to submit a tax return or pay the excise duty.

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If you are unsure whether you are subject to obligations concerning the excise duty on electricity, our experienced team of tax specialists is at your disposal. We provide expert advice and practical assistance with:

• Registration as an excise duty on electricity payer,
• Preparation and submission of excise tax returns,
• Addressing issues related to tax exemption and guarantees of origin for electricity from renewable sources.

Do not hesitate to contact us to help you fulfill all obligations concerning the excise duty on electricity, allowing you to focus on your business.