EXCISE DUTY REFUND ON DIESEL FOR ROAD TRANSPORT: PUBLICATION OF NEW REFUND RATES
August 8, 2022
The TICPE (Taxe Intérieure de Consommation sur les Produits Energétiques) applies to a number of energy products such as fuels, hydrocarbons or oil products. The TICPE only applies to such products if they are used for fuel purposes. TICPE therefore stands for the French excise duty applicable on such energy products (similar to e.g. Mineral Oil Tax (M.O.T.).
The TICPE is regulated at the European level by Directive 2003/96/EC and was first set out in Articles 265 et seq. of the French Customs Code, which set out the general system of the TICPE as well as the specific features of the excise duty rate determination, particularly in relation to certain energy products or their utilization.
French excise duty rates specific to road transportation
Transportation companies and carriers, formerly covered in article 265 sexies et seq. of the French Customs Code, benefits from a specific excise rate system thanks to a partial refund of the TICPE on diesel consumed by road vehicles. These vehicles must which meet a certain number of conditions provided for by French law, such as the European registration of the vehicles (plates).
As you now know, the TICPE applicable to road transporters was recodified on January 1, 2022 in a new French Code called “CIBS”. This was namely made in view of the progressive transfer of responsibilities for the management and collection of indirect contributions and domestic consumption taxes from the French customs administration to the French tax administration.
New French excise duty code and provisions
It is now in article L312-49 to 58 of the French Code of Taxation of Goods and Services (Code des impositions sur les biens et les services – “CIBS”) that the provisions of the French Customs Code regime are found in substance.
It should be noted that, to this extent, the French excise recovery rights of the TICPE which are still opened for the period prior to the CIBS are still covered by article 265 sexies of the French Customs Code.
Warning: From a practical standpoint, the amount of partial TICPE refunds also depends on the regions of France in which road vehicles are supplied with diesel fuel.
In order to obtain a refund, it is therefore necessary to apply to the quantities of diesel consumed by each eligible vehicle at a full excise duty rate, a TICPE refund rate regularly updated by the customs administration in its official bulletins.
Publication of the new French excise refund rate applicable on 2nd semester 2022
For the first half of 2022, the administration published on July 29, 2022 the rates applicable from July 1 to December 31, 2022 for goods transportation vehicles:
Refund rates by region:
CENTRE VAL DE LOIRE: 15,56
GRAND EST: 15,56
HAUTS DE FRANCE: 15,56
NOUVELLE AQUITAINE: 15,56
PAYS DE LA LOIRE: 15,56
PROVENCE-ALPES-CÔTE D'AZUR: 15,56
Weighted standard rate: 15,70
Note that the ”taux forfaitaire” applies when a road vehicle is supplied in more than three regions of France.
You transport goods by road and happen to fuel your trucks in France with diesel fuel? Your company has a fleet of vehicles used for the transportation needs of your core activity? Contact FISCALEAD to check the eligibility of your vehicles for the application of reduced French excise duty rates on diesel fuel. We will handle the formalities on your behalf with the competent French customs services and obtain for you the refunds to which you are entitled.