Brussels, 23 July 2007
The European Commission has decided to refer Poland to the European Court of Justice for its failure to align its electricity taxation system on the Community framework. Under EU law, excise duty on electricity is chargeable at the time of supply by the distributor or redistributor, making them liable to pay the tax. In Poland, however, excise duty on electricity is charged to the producer at the time of supply.
Under Community law, electricity is subject to taxation and becomes chargeable at the time of supply by the distributor or redistributor. Distributors and redistributors are liable for payment of the tax. The Republic of Poland was allowed a transitional period until 1 January 2006 to align its electricity taxation system to the Community framework by shifting the tax liability from the producer to the distributor or redistributor.
By not aligning its electricity taxation system by 1 January 2006, Poland has failed to meet its obligations under the Energy Tax Directive (Directive 2003/96/EC), as read in conjunction with the Accession Treaty.
Given that the Polish legislation was not amended to comply with the reasoned opinion sent in March 2007 (IP/07/404), the Commission has decided to refer the case to the Court of Justice.
The Commission's case reference number is 2006/2218.