Taxes

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Excise duty on natural gas

Excise duty is taxed on natural gas when it is used as for heating, i.e. when it is used to produce heat (the purpose of the heat production – heating of buildings, for technological processes, etc. – is irrelevant).

New excise duty rates will apply to natural gas and motorised natural gas from 1 May 2024. The new excise duty rate for natural gas is 0.04781 €/m3  and the new excise duty rate for motorised natural gas is 0.04183 €/m3.

The excise duty rate for natural gas applied to companies with intensive gas consumption that have a permit for exemption from excise duty from 1 January 2019 is 0.01130 €/m3.

Further information on excise duties on natural gas can be found at  the website of the Tax and Customs Board.

Gas reserve stockpiling fee

According to the amendments to § 267 and § 268 of the Natural Gas Act that entered into force on 1 May 2023, the strategic gas reserve management costs of AS Eesti Varude Keskus will be covered from the gas reserve stockpiling fee as of 1 May 2023.

The network operator adds the rate of the stockpiling fee to the invoice for network services submitted to the consumer with the gas excise duty and the network service change, and adds VAT to all of them.

The rate of the stockpiling fee in euros per megawatt-hour of gas sold is established by a regulation of the Minister of Climate one month before it enters into force. As of 1 July 2024, the stockpiling fee for the strategic gas reserve is 0.64 €/MWh excluding VAT.