Agricultural oil: How the Excise Duty refund is calculated

The Joint Ministerial Decision which defines the terms, conditions, beneficiaries for the return of the Excise Tax on agricultural petroleum.

was published in the Official Gazette.

The statements with the beneficiary farmers, to whom the advance payment of the Special Consumption Tax for 2024, 42.5 million euros will be paid, are at the Ministry of Finance, while the payments have started. It is recalled that the beneficiaries are around 298,000 farmers by profession.

The subsidized amount of motor oil, for which the tax is refunded, per beneficiary person, is calculated, based on the amount of motor oil that has actually been allocated based on the sales invoices, issued within each year, for each beneficiary person

According to the KYA, beneficiaries for the refund of the Special Consumption Tax on internal combustion oil (DIESEL) engines, which is used exclusively in agriculture, are the natural persons who have submitted a Single Aid Application (EAE) for the current year or the previous year, are registered in the Register of Farmers and Agrarians Farms (MAAE) on March 1st or September 1st of the current year and have been assigned the status of “professional farmer” or “professional farmer as a new entrant in the agricultural sector”.

How is the refund of Excise Tax of rural oil calculated

The subsidized quantity of motor oil, for which the tax is refunded, per beneficiary person, is calculated, based on the quantity of motor oil that has actually been allocated based on the sales invoices, issued within each year, for each beneficiary person.

The annual subsidized amount of motor oil, may not exceed the maximum annual entitled amount required to carry out any type of work related to a crop or group of crops (according to the tables below) as well as to each category or type of livestock (see table below), as determined by the mechanical employment indicators (required energy) and according to the EAE data of each current year, as these have been formed on October 1 of each year.

Especially for persons who have submitted an EAE for the previous year and for the need for the first two timely payments for the calculation of the maximum entitled quantity, the data of the EAE previous to the current year are taken into account. Then the maximum entitled amount for the payments is adjusted based on the figures of the E.A.E. of the current year.

In the event that the maximum entitled quantity, based on the current year’s EAE data, is adjusted to lower levels that fall short of the cumulative payments that have already been made, then the excess amount is offset against the immediately following payments. Any amount remaining after the lapse of two years from the year of payment shall be certified and collected as overpaid.

For the calculation of the amount of the VAT refund, the VAT rate is applied, i.e. 0.41 euros per liter.

See in detailthe KYA here.