Quarterly excise declarations - changes from July 1, 2021

The excise tax is one of the indirect taxes in Poland. It has been in force for many years, but its settlement is still complicated and difficult. Taxpayers have a lot of trouble getting it right. Moreover, the Excise Duty Act is subject to constant changes, which makes this process even more difficult. Who is required to submit quarterly excise declarations? We explain in the article.

Quarterly excise declarations - a new obligation

The new obligation to submit tax declarations for the quarterly period applies to the following products:

• exempt from excise duty;

• taxed with a zero excise duty rate and listed in Annex 2 to the Act, for which there was no obligation to submit a declaration for monthly periods.

This declaration will indicate the quantities of excise goods together with the excise duty rate and the excise duty that would be due in the event of failure to meet the conditions entitling to the exemption or application of the zero rate.

Quarterly excise declarations will be submitted, among others, by:

• tax warehouse keepers that have to declare only goods that are exempt or subject to a zero excise duty rate;

• entities that do not keep tax warehouses and carry out activities subject to taxation in the field of only excise goods exempt from excise duty;

• entities that are taxpayers of excise duty on the consumption of alcoholic beverages for purposes exempt from excise duty, e.g. for the production of vinegar, essential oils;

• entities that are taxpayers of excise duty on consumption;

• producers of energy products for which a zero rate applies (used for the production of other products, e.g. paints, varnishes).

Quarterly excise declarations - deadlines for submitting new declarations

The new declarations are divided into AKC-KZ, which relate to domestic trade, and simplified AKC-UAKZ declarations.

Depending on what declaration we make, we have a different deadline.

Quarterly excise declarations for domestic turnover should be submitted to the competent head of the tax office by the 25th day of the second month following the quarter in which the tax obligation arose (see Article 24e (1) of the Excise Act).

However, if we are required to submit a simplified declaration, we must submit it to the competent head of the tax office by the 10th day in the second month after the quarter in which the tax obligation arose (see Article 78 (1) (3b) of the Excise Duty Act) .

We only submit the above new declarations from the third quarter of 2021.

Example 1.

A tax warehouse with only products with a zero rate (e.g. products for the chemical industry) must submit an AKC-KZ declaration. When should the above taxpayer submit the first quarterly declaration?

In the analyzed case, it submits the first declaration by November 25, 2021.

New declaration templates

The legislator defined two new forms of excise tax declaration. The model of the AKC-UAKZ declaration can be found in the Regulation of the Minister of Finance, Funds and Regional Policy of June 2, 2021 on the model simplified declarations on excise duty on intra-Community acquisition of excise goods. It constitutes Annex 2 to this regulation.

The model of the AKC-KZ declaration is attached as Annex 3 to the Regulation of the Minister of Finance, Funds and Regional Policy of June 30, 2021 amending the ordinance on specimen tax declarations for excise duty and excise duty prepayment declarations.

Importantly, both types of declarations should be submitted in electronic form (see Art. 24 (1) and Art. 78 (1a) of the Excise Act).

From July 1, 2021, quarterly excise declarations must be submitted via the PUESC portal.

What declaration should the taxpayer submit if he also trades products with a positive rate, i.e. a rate other than zero?

As a reminder, taxpayers are still required to submit monthly tax returns. It is valid, for example, in the case of:

• production of excise goods outside a tax warehouse,

• completion of the excise duty suspension arrangement,

• taxation:

• carbon products,

• electric energy,

• raw tobacco,

• gas products.

In many cases, taxpayers do not only trade in excise goods with a zero tax rate.

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If the taxpayer submits declarations for monthly periods in which he shows products taxed at a positive rate, zero rate or exempt products, such taxpayers are not subject to the new obligation to submit declarations for quarterly periods.

Importantly, the new obligation to submit declarations for a quarterly period applies to products exempt from excise duty and products taxed with a zero excise duty rate and listed in Annex 2 to the Act only to those taxpayers for whom there is no obligation to submit a declaration for monthly periods.

Therefore, if a taxpayer is required to submit monthly tax returns, in practice it no longer has to submit quarterly returns.

Overall, the new declarations show that excise duty is extremely complex. Taxpayers should pay attention to what declaration they have to submit and by what date. In addition, they must register via the PUESC portal.Thus, they should complete the appropriate registrations in order to be able to submit the next quarterly declarations.