Excise duty – possible exemption in case of own-purpose use of lubricant oils – Mazars Tax Newsletter 2017/16

The proper maintenance of vehicles, manufacturing lines and industrial machinery involves the use of significant quantities of lubricant oil, as insufficient lubrication may lead to repairs, early replacements of parts, or even the breakdown of service or production.

Those working in the fields of finance and taxation are also well aware of the importance of lubricant oils, although they are mostly affected by the environmental product charge and excise tax aspects of these consumables. A passage of the new Excise Duty Act that recently entered into effect, however, may bring some relief to those who procure their lubricant oils from other EU Member States or through imports from third countries. Since these are products subject to excise duty, there are still tasks to attend to. Therefore, it is worth acting with caution.