The taxation of biogas has undergone a significant change with effect from 1 August 2025. The amendment to the Energy Act, the so-called Energy Act. Lex RES III, brings an exemption from tax on all biogas classified under the nomenclature code 2711 29, which is used in the combined production of electricity and heat in cogeneration stations.
The previous practice of the customs administration allowed exemptions only for that part of the gas that was associated with the production of electricity and the tax payer was able to prove that. A proportional part of biogas consumed for heat production could only be exempted from tax in the case of heat being used for household heating or in the production plant where the gas was produced, while strict conditions imposed on detailed records had to be met.
The basis for this interpretation was the judgment of the Court of Justice of the EU in Case C-31/17, which confirmed the obligation to declare tax on all biogas used for heat production. The new legislation essentially expands the possibility of exemption for biogas and at the same time simplifies the related tax and administrative tasks for operators of cogeneration stations.
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