Key Benefits:
Minister of State, Minister of Ecology, Energy, Sustainable Development and Land Management, and Minister of Budget, Public Accounts and Public Service,
Seen them sections 265, 266 quinquies A and 267 of the Customs Code ;
Vu le Decree No. 93-974 of 27 July 1993 modified defining cogeneration facilities that allow the exemption of domestic consumption taxes on mineral oils and natural gas,
Stop:
The exemption of the domestic consumption tax on mineral oils or the domestic consumption tax on natural gas is granted to the end user whose name appears as a customer on invoices issued by the supplier of the products concerned.
Exemption of domestic consumption tax on mineral oils shall be granted by the administration of customs and indirect duties, in the light of an application established in accordance with the model set out in Appendix 1 to this Order, for each of the cogeneration plant sites.
The request for exemption must be addressed to the Regional Customs and Territorially Competent Indirect Authority, together with the following supporting documents:
- extract K bis less than three months from the trade register and companies for registered public or private legal entities;
- location plan of facilities;
― process diagram of the cogeneration facility made;
― attestation by which the final consignee undertakes to use the mineral oils in accordance with the destination that is entitled to this exemption.
The Regional Directorate of Customs and Territorially Competent Indirect Rights issues an exemption decision on the model in Annex 2.
The exemption of the domestic consumption tax on mineral oils is taken into account in the light of the exemption decision (Appendix 2) in two separate procedures:
― a priori exoneration, by means of plate refaction, when the mineral oils are placed under a suspensive regime of excise at the time of their acquisition, or are the subject of intra-communal acquisition or import by the user company itself. The exemption is in this case taken into account on consumer declarations or on tax compliance declarations;
- a posteriori refund under the conditions provided for in Article 6 of this Order, when mineral oils are acquired in the French market in paid.
The above-mentioned domestic consumption tax exemption applies to the quantities of mineral oils actually consumed in the cogeneration facility.
A single establishment can consume mineral oils:
- on the one hand, for the supply of a cogeneration facility;
and, on the other hand, for other uses (including fuel or fuel usage, subject to tax).
In order to determine the share of mineral oils used for the operation of the cogeneration facility and benefiting from the exemption, the decision provided for in section 2 of this Order determines a plate refaction coefficient, as follows:
quantity of mineral oils consumed by cogeneration × 100
total quantity of mineral oils used by the establishment
This coefficient, initially calculated on the basis of the annual consumption estimates for mineral oils per use, is adjusted at the beginning of each calendar year by the Customs office of attachment according to the quantities actually assigned to each of the uses in the previous twelve months. For this purpose, the beneficiary of the exemption shall maintain an accounting of the goods entering each of the facilities available to it within the same establishment.
It also communicates to the Customs office of attachment, no later than 31 January of each year, a summary statement by product and use of the quantities of mineral oils acquired and consumed monthly during the previous year. The new plate refaction coefficient, valid for the year in question, is notified without delay to the recipient by the Customs office of attachment.
On the basis of the information provided on the summary statement provided for in Article 5 above, the Customs office of attachment shall conduct the accounting regulations that are necessary to take into account the real right to exemption.
The additional exemption that is eligible for reimbursement or, where applicable, the additional tax payable is calculated by applying to the quantities of mineral oils affected by regularization the rate of the domestic consumer tax of the previous year. In the event of a change in rate over the year, a weighted average rate based on the number of days of application of each rate is retained.
Invoices for mineral oil acquisitions are kept at the disposal of the Customs Service for a period of three years.
Exemption of domestic consumption tax on natural gas is implemented by means of an attestation from the operator of the facility to its natural gas supplier, based on the form set out in Appendix 3 to this Order, for each of the cogeneration plant sites. The attestation is established before delivery in the event of one-time delivery of natural gas, or January 1 of each calendar year when the gas is delivered continuously. The certificate shows the applicable exemption coefficient, expressed as a percentage of total quantities of gas delivered.
A copy of the certificate is sent to the Customs Department.
Implementation of the exemption.
At the time of the implementation of the exemption, following the commissioning of the cogeneration facility, the copy of the certificate sent to the customs office is accompanied by a description of the cogeneration facility, as set out in Appendix 4, and the following supporting documents:
- extract K bis less than three months from the trade register and companies for registered public or private legal entities;
- location plan of facilities;
― process diagram of the cogeneration facility made;
― attestation by which the final consignee undertakes to use natural gas in accordance with the destination that is entitled to this exemption.
Taking into account the exemption by the natural gas supplier.
Exemption of the domestic consumption tax on natural gas is taken into account by the natural gas supplier. The latter applies to the total quantities of gas delivered to its client the exemption coefficient mentioned on the certificate to determine the quantities of natural gas that do not bear the tax.
Determination of the initial exemption coefficient.
Exemption of domestic consumer tax on natural gas under section 266 quinquies A applies only to quantities of natural gas actually used in the cogeneration facility.
An establishment can consume natural gas:
- on the one hand, for the supply of a cogeneration facility;
and, on the other hand, for other uses (use as fuel, subject to tax, or other uses exempted under theArticle 266 quinquies of Customs Code).
Under these conditions, the exemption certificate determines an exemption coefficient applicable to the entire gas delivered to the establishment, the total amount recorded by a billing counter whose references are specified on the exemption certificate.
The exemption coefficient takes into account the different uses of natural gas in the establishment:
― natural gas used by the cogeneration facility, which benefits from exemption under theArticle 266 quinquies A of Customs Code ;
natural gas used for other uses exempted under theArticle 266 quinquies of Customs Code ;
natural gas used for taxable purposes.
The coefficient of exemption, expressed as a percentage of the amount of gas delivered, is calculated initially on the basis of the annual forecast of natural gas consumption per use, according to the following calculation:
Prev. amount of gas used for exempt uses × 100
forecast amount of gas delivered
Adjustment of the exemption coefficient.
When the gas is delivered on a continuous basis, the exemption coefficient is adjusted to January 1 of each calendar year and is reproduced on the annual certificate sent to the gas supplier, a copy of which is sent to the customs services.
The current year's exemption coefficient is based on the previous year's consumption according to the following calculation:
exempted during the previous year × 100
quantities delivered during the previous year
In cases where the distribution by use of the previous year's consumption is not representative of the situation during the current year, the exemption coefficient is based on a forecast distribution of the gas consumption between taxable and non-taxable uses.
In case of one-time certification, the exemption coefficient is determined prior to each delivery and indicates, as a percentage of the amount of gas being the subject of the future delivery, the amount of gas that will be used for exempt use.
Annual accounting regulation.
For 31 January of each year no later than 31 January, the beneficiary of the exemption shall submit to the Customs office a summary of the amount of gas acquired and consumed during the previous year, distinguishing the quantities delivered, the quantities used for exempt uses and the quantities used for taxable purposes. This summary statement is accompanied by a copy of the invoices for gas deliveries for the previous year. The form of this summary statement is defined by instruction of the Director General of Customs and Indirect Rights.
The customs office then proceeds to the regularizations that are necessary to take into account the real right to exemption.
The additional exemption that is eligible for reimbursement or, where applicable, the additional tax payable is calculated by comparing the tax due during the year, calculated from the taxable quantities, to the tax charged by the natural gas supplier to his client.
Invoices related to natural gas acquisitions and established exemption certificates are kept at the disposal of the Customs service for a period of three years in addition to the current year.
The decision of 9 January 2004 on the terms and conditions for the declaration of the cogeneration and granting of the exemption of domestic consumption taxes on mineral oils and natural gas is repealed.
The Director General of Energy and Climate and the Director General of Customs and Indirect Rights are responsible for the execution of this Order, which will be published in the Official Journal of the French Republic.
You can consult the table in the
JOn° 207 of 05/09/2008 text number 28
You can consult the table in the
JOn° 207 of 05/09/2008 text number 28
You can consult the table in the
JOn° 207 of 05/09/2008 text number 28
You can consult the table in the
JOn° 207 of 05/09/2008 text number 28
Done in Paris, August 5, 2008.
Minister of Budget, Public Accounts
and the Public Service,
For the Minister and by delegation:
By preventing the Director General
Customs and Indirect Rights:
The Finance Inspector,
Sub-direction
indirect rights,
H. Havard
Minister of State, Minister of Ecology,
of energy, sustainable development
and landscaping,
For the Minister and by delegation:
Director General
energy and climate,
P.-F. Chevet
