Temporary exemption from the CO2 duty on natural gas and LPG used in certain processes
The exemption from the CO2 duty on natural gas and LPG used for chemical reduction or electrolysis, metallurgical and mineralogical processes, has been reinstated with effect from 1 April 2020.
The exemption is implemented by setting the CO2 duty to NOK 0 per Sm3 of natural gas and NOK 0 per kg LPG from 1 April 2020. The exemption applies to quota-regulated and non-quota regulated enterprises alike.
The practical implementation of the exemption
The exemption is implemented using a refund scheme. As they do today, enterprises must buy natural gas and LPG with full duty included in the price. The enterprises may then apply to the Tax Administration for a refund of the difference between the full rate and the reduced rate.
The aim is to gradually increase the duties to today’s level over a four-year period. The gradual increase is implemented by increasing the duty rates to a certain percentage of the general duty amount of the CO2 duty on natural gas and LPG in the following intervals:
- 2021 – 25 percent Postponed until until further notice
- 2022 – 50 percent
- 2023 – 75 percent
- 2024 – 100 percent
How to apply for a refund
The enterprises that use natural gas and LPG have a right to a refund of excise duties.
To apply for a refund, chose “write to us”, log in, fill out the form and upload the attachments.
- Download the form RF-1326.pdf and use this as an attachment to your refund application. Use the new tax groups CN 135 for CO2 duty on natural gas and CL 135 for CO2 duty on LPG.
- You must provide proof that the duties were paid, as well as a declaration that the products are meant for duty-free use.
- Upload your attachments and submit the application.
Details concerning the refund scheme will be established in the regulations.