With the introduction of the Ecological Tax Reform Act (which effectively introduced the electricity tax and mineral oil tax) energy tax has become more important for energy supply companies. Further amendments have been made to energy law due to the transposition Council Directive 2003/96/EG of 27th October, 2003 restructuring the Community framework for the taxation of energy products and electricity.

Due to the extent of the energy taxes it is indispensable for energy supply and other companies relying on a high level of energy consumption to have knowledge of energy taxation law and to ensure energy tax savings. To name just a few: there are tax breaks for producing companies (reduced tax rates and peak offset) or the tax exemptions in Section 9 Subsection 1 No. 1 and 3 StromStG (Electricity Tax Act). Apart from the aforementioned areas there are several procedural issues, e.g. adherence to permit and license requirements. Furthermore, there is an overlap with other areas of energy law (passing on the tax burden to the final customer on a contractual basis, consequences of the concession levy law, particularities in case of implementing unbundling requirements). In addition to evaluating our clients’ substantive law questions and optimising their energy tax returns, we provide comprehensive advice in relation to tax declarations, tax refunds as well as external audits of the main customs office.

Our practice is not solely limited to matters surrounding electricity and mineral oil law. We also address legal issues associated with sales and income tax in the energy sector. Such sales tax issues include - amongst others - the treatment of cross-border trade in gas and electricity, new regulations due to the implementation of Directive 2003/92/EC, the issue of pre-tax deduction and public services operations, particularities in the case of the taxation of Options and other derivates as well as the sales tax treatment of energy input according to the Renewable Energy Sources Act (EEG) and the amended Combined Heat and Power Act (KWKModG). From an income tax point of view it is important to mention the consolidated tax filing status, how to cope with unbundling from a tax point of view taking into account the rules of the energy laws and the applicable ordinances, questions relating to affiliated companies in the context of unbundling (alternatives to taxable entities with more than one / several parent companies - "Mehrmütterorganschaft"), hidden profit distribution and the concession levy law as well as the budgetary treatment of construction subsidies and Options.

Contact persons in this area are Rudolf Böck (Munich) andDaniel Schiebold (Berlin).