Electricity Producers Win Excise Duty Refunds

Polish electricity producers can claim significant refunds of excise duty, following a ruling dated 12 February 2009 (C-475/07) by the ECJ that Poland's excise duty on electricity is incompatible with EU law.

The court has not imposed any time limit on the effects of the judgment.

In relation to the restructuring of the Community framework for the taxation of energy products and electricity in 2003, after joining the EU Poland was obliged to bring Polish law into compliance by 1 January 2006. However, it failed to meet the deadline.

The 2003 Directive requires electricity to be subject to taxation when it is supplied to the end consumer by the distributor or redistributor.