Excise duty refunds for electricity
If a company is entitled to use electricity of tax category II but the price of the electricity the company has bought includes tax of category I, the difference between the tax categories is refunded to the company. The company must request the refund from the Tax Administration.
Previously, the difference between the tax categories was credited such that the electricity provider filed it as a deduction on the excise duty return on electricity. As of the first tax period of 2021, no deductions can be made in excise taxation. Instead, a separate refund application must always be submitted for the difference between the tax categories.
A refund application for electricity used after 1 January 2021 is submitted by the end user. A refund for excise duty on electricity used before 2021 must be submitted be the electricity supplier.
You can also use a paper form. You can file on paper if electronic filing is not possible, for example due to technical difficulties.
Note: If your company is permanently entitled to use electricity of tax category II, please contact the electricity provider of your place of use. The electricity provider usually means the company operating the electricity network. The electricity provider changes your company’s tax category, and so you receive the tax advantage directly in the invoicing.
When should a refund be requested?
You can request an excise duty refund on electricity within 3 years from the end of the calendar year containing the period. You can request a refund either for the calendar month or for the calendar year. Submit a separate request for each year or month.
The tax advantage for excise duty on electricity is State aid – the details are recorded in the State aid register of excise taxation
The difference between tax categories I and II (i.e. excise duty refund paid on the basis of the difference) is State aid received by the end user. The Tax Administration enters the aid recipient, i.e. the party requesting a refund, in the State aid register of excise taxation. Some State aid details are public information. You can check your company’s aid details in MyTax.
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, no aid is granted and any aid already granted may be claimed back.
Refund basis and refund amount
You qualify for the tax advantage of tax category II only if the electricity of category II has been metered separately from other electricity and used either in industry or in data centres.
Industry refers to operations under section C (manufacturing) or section B (mining and quarrying) of the Standard Industrial Classification of Statistics Finland (TOL 2008). See the classification on the website of Statistics Finland Professional greenhouse cultivation is also comparable to industry.
Electricity used in server rooms is subject to the lower tax category only if the company’s main business activity is information service activities, data processing, renting of server premises and related services. Additionally, the company must have a data centre with a total power of more than 5 MW in which the company conducts these activities.
The refund is the difference between tax category I and tax category II for electricity / kilowatt-hours. You can check the tax rates for the tax categories in the Tax Administration guidance Tax rates on electricity and certain fuels. Please note that the difference between the tax categories is calculated based on the share of excise duty only. The VAT share, for example, is not taken into account.