2018 Tax Plan - Dutch government proposes temporary increase in energy taxes

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2018 Tax Plan - Dutch government proposes temporary increase in energy taxes

2018 Tax Plan - Budget Day (Prinsjesdag)

The following elaborates on the plans to increase energy tax duties for 2018 and 2019 in the Netherlands.

27 September 2017

Introduction

This Customs Flash elaborates on the plans to increase energy tax duties for 2018 and 2019 in the Netherlands.

What does this mean for you?

In 2013 the Dutch government and several Dutch organizations concluded an energy agreement. This agreement is targeted at achieving a healthier environment and economy. To achieve these goals it was concluded that energy taxes rates would be raised in 2018, but the agreement did not mention any exact rates. On Budget Day these rates were announced to the public. The proposed changes for the 2018 calendar year are listed below, all amounts are in Euro.

Rates for gas

  Gas 2017 Increase 2018 2018
Scale 1 0 - 170.000 M3 0.25244 0.00555 0.25799
Scale 2 170.000 - 1 mln. M3 0.06215 0.00199 0.06414
Scale 3 1 mln. - 10 mln. M3 0.02265 0.00072 0.02337
Scale 4 Above 10 mln. M3 0.01216 0.00039 0.01255

Rates for gas for horticultural purposes

  Gas Reduced (Horticultural) 2017 Increase 2018 2018
Scale 1 0 - 170.000 M3 0.04054 0.00089 0.04143
Scale 2 170.000 - 1 mln. M3 0.02346 0.00075 0.02421
Scale 3 1 mln. - 10 mln. M3 0.02265 0.00072 0.02337
Scale 4 Above 10 mln. M3 0.01216 0.01255 0.01255

According to the proposed Dutch tax package, the increase will (probably) be reversed in 2020. The rates for 2019 will, according to the proposed tax package, be decreased as of 1 January 2020 to the following amounts, in Euro:

Rates for gas:

  Gas Decrease 2020
Scale 1 0 - 170.000 M3 0.00531
Scale 2 170.000 - 1 mln. M3 0.00199
Scale 3 1 mln. - 10 mln. M3 0.00072
Scale 4 Above 10 mln. M3 0.00039

Rates for gas for horticultural purposes:

  Gas Decrease 2020
Scale 1 0 - 170.000 M3 0.00085
Scale 2 170.000 - 1 mln. M3 0.00075
Scale 3 1 mln. - 10 mln. M3 0.00072
Scale 4 Above 10 mln. M3 0.00039

If the proposal is accepted, the higher rates will apply from 1 January 2018 for gas supplied in the Netherlands. The Dutch government proposes to postpone an increase in the incremental renewable energy on gas as compensation for the above mentioned higher rates of energy tax.

What to do?

Gas companies should be aware of the proposed increase to energy taxes in the Netherlands for the year 2018. To avoid unwelcome surprises, it could be advisable for gas companies to advise their clients on the proposed changes. As the final energy tax rates are often published quite late in the year, it is strongly recommended that gas companies regularly check the official website of the Dutch government, where the latest adjustments to regulations are announced. Changes are often published in late December, however the final rates for 2017 were only published in January 2017. Of course Deloitte the Netherlands will keep a sharp eye on these announcements and will inform you accordingly.

Budget Day 2017 - Webcast

After Budget Day, Deloitte Tax Lawyers discussed the new proposed bills during a webcast, on Wednesday September 20, 2017. You can see the recorded webcast (in Dutch) here.

Deloitte Update Cafés

Throughout the country, Deloitte organizes Deloitte Update Cafés three times a year: meetings in a pleasant setting with an abundance of network opportunities. This is where Deloitte experts will bring you up to speed about current developments in your field of expertise. Recently discussed topics included: cyber security, financial reporting, amendments in tax legislation, risk & reputation, management reporting, Mid-Market trends and developments, and applied data analytics. Deloitte Update Cafés take little time: most consist of two one-hour presentations.
You will find Deloitte Update Cafés in (or around) Alkmaar, Amsterdam, Arnhem, Breda, Eindhoven, Maastricht, Groningen/Leeuwarden, Utrecht, and Zwolle.

More about Deloitte Update Cafés (in Dutch).

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