As part of a file for a new customer with a photovoltaic (PV) system, we learned of a very GRAVE fact: it is the story of Stefano, a business owner in the Province of Chieti.
Stephen found himself paying DOUBLE the excise taxes than he should have.
Excise tax is a tax levied on the production or consumption of certain products, including electricity. Usually the electricity supplier acts as a tax substitute for the end customer. This means that excise taxes for consumption, which the company pays on its invoice, are paid to the Treasury by the supplier.
What changes when you install a photovoltaic system?
If you produce electricity with a renewable energy plant and self-consume it (i.e., use it within your business without feeding it into the grid) YOU DON’T HAVE TO PAY ACCRUITS.
However, in the case of a photovoltaic system greater than 20 kW, you have certain OBLIGATIONS:
- Apply in advance for the establishment of electric power production workshop to the relevant local Customs Agency office and obtain the operating license for production workshop.
- Compile the production logbook, noting meter readings periodically
- Submit the Annual Consumption Declaration on the website of the Customs Agency
- Notify the Customs Agency of any changes in the facility
In this case, you can also decide to pay excise taxes directly on the electricity you continue to purchase. In this way:
- Taxes disappear from the bill
- you pay a monthly installment through the F24 form (the document with which you pay most taxes and contributions)
- the following year you pay an adjustment following the Declaration of Consumption (a document that if you have a PV system you MUST submit to Customs by March 31 each year, using a special portal)
What happened to our client
Stephen’s company was regularly paying excise taxes every month with F24. The problem was that he kept paying them in his electricity bill as well! As you can see from the image below, the taxes amounted to over 3,000/month:
Since no VERIFICATION of the invoices was being done this situation went on for 5 YEARS before it was discovered, totaling about €100,000 in extra excise taxes paid.
How to avoid paying DOUBLE the excise taxes
You must ALWAYS notify your supplier that you have recognized an electrical workshop and the method of payment of excise taxes so that they will no longer apply them on your invoice.
The important thing is that the legislation gives you the option of requesting a REFUND of excise taxes paid unduly, but for a period going back a maximum of 2 YEARS. So you may still be in time! That’s why it is essential to check your invoices now for accuracy with the help of an experienced consultant.
Do you have a PV system and need assistance in submitting the Declaration of Consumption?
If you want to know how to best manage your facility and check for undue amounts on your bill CONTACT US NOW!
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