The entry of excise duty products into the energy sector by a company can have implications on additional taxes. One question is whether the taxable base for VAT on the sale of the product to the end consumer should include the excise duty paid by the seller. Additionally, it is queried whether the excise duty borne by the company is deductible for income tax purposes. The right of recourse exercised by the selling company against the end consumer is a crucial factor. In the electricity sector, the right of recourse is recognized, while in the case of non-transferred excise duty, it is not included in the VAT base. The deductibility of excise duty depends on whether the right of recourse is exercised.
Source: eutekne.info
