Energy tax in Hungary
Energy tax is a public levy imposed on the use of energy products (e.g. natural gas, electricity, coal). Since 2017, the statutory provisions governing the tax payable on energy products have been set out in the Excise Duty Act. The energy tax has not been abolished; rather, it has been structurally integrated into the excise duty regime.
Different rules apply to the “classic” energy products compared to other energy products defined in the Excise Duty Act.
In the course of trading and processing coal, natural gas and electricity, the record-keeping and invoicing obligations applicable to tax warehouses and authorised excise traders do not apply.
The affected businesses must maintain separate records, and any taxable person carrying out the sale of natural gas, electricity or coal must indicate the tax separately on the invoice.
Taxpayers:
- energy traders,
- non-household energy users,
- businesses producing energy for their own use, and
- district heating service providers.
For natural gas, electricity and coal, the excise duty liability arises differently from the general rules.
Tax base for energy products:
The quantity of the energy product, measured in the unit of quantity specified for the applicable tax rate.
Energy tax rates:
- for natural gas supplied, sold or used as motor fuel for road vehicles: HUF 36/m³; otherwise HUF 0.3879/kWh,
- for electricity: HUF 398 per megawatt-hour,
- for coal: HUF 3,230 per 1,000 kilograms.
Tax return and payment:
The liable person must declare the tax liability on a monthly basis by self-assessment by the 20th day of the month following the relevant month, and must pay the tax by that date, or may claim a refund by that date if entitled.
Excise tax
Excise tax is a single-phase consumption tax payable on the production and the importation into Hungary from the EU or third countries of certain products - energy products, beer, still and sparkling wine, other still and sparkling fermented beverages, intermediate alcohol products, alcohol products, and tobacco products. The Excise Tax Act is national legislation. Although there are EU directives, there is no unified EU regulation concerning excise legislation. Hungary established its system of excise taxation in line with Community principles.
The Hungarian Excise Act is a very strict regulation. Excise products may only be produced, used, stored, traded commercially, purchased from or transported to the territory of the Community, or imported and exported, if they are in possession of an appropriate excise license.
The product subject to the excise act has different tax rates, listed by the Act, and each excise activity needs a different amount of excise guarantee.
Activities carried out without an appropriate excise permit or any irregularities are strictly punished by law.
Products subject to excise tax payment obligation
Excise products are energy products, beer, still and sparkling wine, other still and sparkling fermented beverages, intermediate alcohol products, alcohol products, and tobacco products.
Energy products (controlled energy products, other controlled energy products, monitored products):
- coal,
- electricity,
- natural gas,
- mineral oils,
- lubricating oils,
- heating oil,
- gas oil,
- controlled mineral oil,
- vegetable oils produced or imported for the purpose of fuel use,
- bio-ethanol,
- alcohol containing fuels,
- products used as fuel.
Tobacco product: cigarettes, cigars, cigarillos, fine-cut smoking tobacco, other smoking tobacco, new tobacco product categories, nicotine-containing e-cigarette liquids
