Tag: Energy

The Supreme Administrative Court (20 March 2025, I FSK 1742/21) confirmed that fuel consumed during testing, maintenance and repair of aircraft engines is exempt under Article 32(1)(1) in conjunction with Article 32(2) of the Excise Duty Act, provided that the activity is commercial in nature and is performed for a third party.

This is good news for the MRO (Maintenance, Repair & Overhaul) sector – fuel used during tests commissioned by the customer and invoiced falls within the scope of the exemption. It is worth analysing service contracts and the method of documenting fuel consumption in terms of meeting the conditions of commerciality.

This can be done with an excise duty expert, tax advisor Dominika Kamińska.

According to current case law and the interpretation of Article 11(2) of the Excise Duty Act, electricity recovered through recuperation does not constitute a new volume of energy subject to taxation.

Excise duty arises only when the electricity is released by the distribution system operator, i.e. when its quantity and value are actually settled. The energy fed into the grid (recovered) is in fact the same energy that was previously consumed, so there is no new generation within the meaning of the Act.
This approach confirms the favourable position for railway companies and traction system operators who recover energy from vehicle braking.
If your company settles electricity based on the recuperation process, it is worth verifying the method of calculating excise duty and the documentation from the DSO.

Need advice? Contact our experts Sebastian Gumiela and Dominika Kamińska.

Translated with DeepL.com (free version)

NSA RULING: Aircraft engine servicing – fuel exempt for MRO services

Energy recovery without new excise duty obligations