The European Commission has sent Poland a request to align its electricity taxation system with the Community framework. Under EU law, the supply of electricity is subject to taxation at the time of supply by the distributor. However, in Poland, the tax is charged to the producer. Poland had until 1 January 2006 to shift the tax liability from the producer to the distributor, but by not aligning its electricity taxation system, Poland failed to meet its obligations under the Energy Tax Directive. Therefore in November 2006 the Commission opened an infringement procedure against Poland. As Poland’s reply was not satisfactory, the second stage of the infringement procedure was launched recently in the form of a reasoned opinion. If Poland does not comply with the EU's electricity taxation regime, the Commission may take action against Poland before the European Court of Justice.
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Polish excise duty not in compliance with EC treaty
- McDermott Will & Emery
- Geert Dierickx
- European Union, Poland
- March 30 2007
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Sonja Sarantis
Legal Counsel
State Street Bank and Trust Company