Excise duty refunds for fuels used in electricity production and in combined production of heat and electricity
Fuels used for electricity production are exempt from excise duty. If the fuel purchased includes excise duty but is used for the production of electricity, the electricity producer can request a refund for the excise duty and the strategic stockpile fee. The refund can be requested for fuels used in a power plant registered as an electricity producer.
You can ask the Tax Administration to refund the excise duty and the strategic stockpile fee afterwards. Refunds can be claimed for fuel oil, heavy fuel oil, LPG and their replacement products, and for coal and natural gas.
As regards fuels including excise duty used in heat production, you can also claim an energy content tax reduction as a refund if the fuel has been used in combined production of heat and electricity in 2019–2020. If the fuel was used in 2018, you can claim half of the carbon dioxide tax as a refund. Fuels used for heat production in 2018–2020 are calculated from the fuel volume obtained by multiplying the volume of heat released for consumption by 0.9.
Starting 2021, fuels used for heat production are calculated based on the heat volume released for consumption, i.e. the previously used multiplier (0.9) is no longer used. This means that the volume of fuels used for heat production is the same as the volume of heat released for consumption. The refund is requested for the difference between the normal tax rates on fuel and the tax rates on combined production. See the tax rates on combined production in Table 2: tax rates on liquid fuels and in Table 3: tax rates on electricity and certain fuels.
Read more: Energy taxation (available in Finnish and Swedish, link to Finnish)
You can also use a paper form. You can file on paper if electronic filing is not possible, for example due to technical difficulties.
Tax reduction on fuels used in heat production is State aid – it is recorded in the State aid register of excise taxation
In combined production, the tax advantage brought about by fuels used for the production of heat is State aid. The Tax Administration enters the aid recipient, i.e. the refund applicant, in the State aid register of excise taxation. You can check your company’s aid details in MyTax. Some State aid details are public information.
Please note that State aid may only be granted to companies that are not in financial difficulties under the General Block Exemption Regulation. If the company is in financial difficulties under the regulation, no aid is granted and any aid already granted may be claimed back.
Read more: State aid under the General Block Exemption Regulation in excise taxation (available in Finnish and Swedish, link to Finnish)
When can you request a refund?
You can request a refund for the excise duty on fuels either for the whole year in one go or separately for January–June and July–December. Request a refund for the fuels you have used for tax-exempt purposes during the period. You can request the refund after the application period has ended.
The application must be submitted to the Tax Administration within three years of the end of the application period. The time limit for requesting a refund is counted from the start of the calendar year following the application period. Specify the fuels used per power plant.
Refund amounts and refund levels
The refund depends on the fuel type and its composition, volume and date of purchase.
Refunds for light fuel oil and LPG are calculated based on the refund levels confirmed by the Tax Administration. Their calculation is based on the average of fuels released for consumption. The refund levels are confirmed every six months: the level for January–June is confirmed in October, and the level for July–December, in March.
The refund for fuel is determined on the basis of the date of purchase.
MyTax calculates the refund automatically based on either the exact composition of the fuel or the refund level. If you file on a paper form, you can calculate the refund yourself.
The minimum refund is €330; smaller amounts are not refunded.