Excise Duties and Tax Warehouses Act

Renewable energy policy database and support Legal sources on renewable energy Tax regulation mechanism (Tax Reduction for Biofuels) Eligible technologies Amount Addressees Procedure Distribution of costs Basic information on legal sources

Updated: 23.01.2019 Author: Ivana Naydenova Following financial incentives are applied to promote the use of biofuels: a reduced rate of excise duty for unleaded petrol when bioethanol with 4% to 5% of volume has been added; a reduced rate of excise duty for gas oil when biodiesel with 4% to 5% of volume has been added.  Following financial incentives are applied to promote the use of biofuels:  Subject to the tax allowance are only biofuels.Biofuels"Biodiesel" is a methyl ester produced from vegetable oils or animal fats with the quality of diesel fuel intended for use as fuel for diesel engines made from biodegradable fraction of products, waste and residues from agriculture (including vegetal and animal substances), forestry, and the biodegradable fraction of industrial and household waste (art. 4 no. 22 ZADS). 	"Bioethanol" means ethanol produced from biomass and / or the biodegradable fraction of waste, which is intended for use as biofuel (art 4 no. 23 ZADS).  Subject to the tax allowance are only biofuels. "Biodiesel" is a methyl ester produced from vegetable oils or animal fats with the quality of diesel fuel intended for use as fuel for diesel engines made from biodegradable fraction of products, waste and residues from agriculture (including vegetal and animal substances), forestry, and the biodegradable fraction of industrial and household waste (art. 4 no. 22 ZADS). 	"Bioethanol" means ethanol produced from biomass and / or the biodegradable fraction of waste, which is intended for use as biofuel (art 4 no. 23 ZADS).  "Biodiesel" is a methyl ester produced from vegetable oils or animal fats with the quality of diesel fuel intended for use as fuel for diesel engines made from biodegradable fraction of products, waste and residues from agriculture (including vegetal and animal substances), forestry, and the biodegradable fraction of industrial and household waste (art. 4 no. 22 ZADS). 	"Bioethanol" means ethanol produced from biomass and / or the biodegradable fraction of waste, which is intended for use as biofuel (art 4 no. 23 ZADS).  The reduced rate of excise duty, approved by the Commission, is applicable to biofuel blends of 4% to 5% inclusive. The reduced rates are valid for 2 years from the date of approval of the scheme notified.
For unleaded petrol used in transport, meeting the sustainability criteria laid down in art. 37 par. 1 and 4 of ERSA as well as the technical and quality requirements of art. 51 par. 2 ERSA, in which the content of bioethanol is 4 percent or more by volume – BGN 646 (€ 323) for 1,000 litres (art. 32 par. 8 ZADS). Otherwise: BGN 710 (€ 360) for 1,000 litres (art. 32 (1) ZADS) – tax reduction of BGN 64 (€ 32) for 1,000 litres (art. 32 par. 2 ZADS).For gas oil used in transport, meeting the sustainability criteria laid down in art. 37 par. 1 and 4 of ERSA as well as the technical and quality requirements of art. 51 par. 2 ERSA, in which the content of biodiesel is 4 percent or more by volume – BGN 646 (€ 323) for 1,000 litres (art. 32 par. 9 ZADS). Otherwise: BGN 710 (€ 360) for 1,000 litres – tax reduction of BGN 64 (€ 32) for 1,000 litres (art. 32 (1) ZADS). The reduced rate of excise duty, approved by the Commission, is applicable to biofuel blends of 4% to 5% inclusive. The reduced rates are valid for 2 years from the date of approval of the scheme notified.
For unleaded petrol used in transport, meeting the sustainability criteria laid down in art. 37 par. 1 and 4 of ERSA as well as the technical and quality requirements of art. 51 par. 2 ERSA, in which the content of bioethanol is 4 percent or more by volume – BGN 646 (€ 323) for 1,000 litres (art. 32 par. 8 ZADS). Otherwise: BGN 710 (€ 360) for 1,000 litres (art. 32 (1) ZADS) – tax reduction of BGN 64 (€ 32) for 1,000 litres (art. 32 par. 2 ZADS).For gas oil used in transport, meeting the sustainability criteria laid down in art. 37 par. 1 and 4 of ERSA as well as the technical and quality requirements of art. 51 par. 2 ERSA, in which the content of biodiesel is 4 percent or more by volume – BGN 646 (€ 323) for 1,000 litres (art. 32 par. 9 ZADS). Otherwise: BGN 710 (€ 360) for 1,000 litres – tax reduction of BGN 64 (€ 32) for 1,000 litres (art. 32 (1) ZADS). Entitled party: End consumers of biofuels resp. fuel producers Entitled party: End consumers of biofuels resp. fuel producers Competent authorityBulgarian Ministry of Finance Competent authority Bulgarian Ministry of Finance StateThe costs of the tax exemption are borne by the state, which receives lower tax revenue. The costs of the tax exemption are borne by the state, which receives lower tax revenue. The costs of the tax exemption are borne by the state, which receives lower tax revenue. The costs of the tax exemption are borne by the state, which receives lower tax revenue. An initiative of the