Natural Gas Carbon Tax (NGCT)

Reliefs

A full relief from the tax is granted for natural gas which is shown to the satisfaction of the Revenue Commissioners to have been supplied for use:

  • solely for the generation of electricity (excluding combined heat and power cogeneration for 2016 and earlier) – see below
  • for chemical reduction
  • in electrolytic or metallurgical processes

The relief may be applied by the supplier on the basis of a declaration by the consumer that the supply qualifies for the relief. The consumer must complete the Other Exempt Purposes declaration and forward it to the supplier. A scanned copy must also be sent to Revenue via MyEnquiries.

A supplier may only apply a relief at source where that supplier receives a full declaration in advance. In any other case the relief must be claimed from Revenue by the consumer.

If a consumer provides false or misleading information to a supplier, the consumer and not the supplier will be liable for any underpaid tax.

Combined Heat and Power Cogeneration (CHP)

Natural gas used as fuel for CHP plants is not eligible for relief except in the circumstance outlined below.

Full relief

A provision was included in the Finance Act 2016, with effect from 1 January 2017, to change the relief from NGCT for natural gas used in environmentally friendly HE CHP from a partial relief to a full relief.

Full details of the relief from NGCT for natural gas used for High-Efficiency, Combined Heat and Power cogeneration that applies after 1 January 2017 are given in the high efficiency combined heat and power cogeneration section.

Greenhouse Gas Emissions Permit Holders

A partial relief from the tax is granted for natural gas delivered for use in an installation that is covered by a greenhouse gas emissions permit issued by the Environmental Protection Agency. The natural gas will be taxed at the minimum rate specified in the EU Energy Tax Directive, €0.54 per megawatt hour at gross calorific value. 

The relief may be applied by the supplier on the basis of a declaration by the consumer that the supply qualifies for the relief. The consumer must complete the Greenhouse gas emissions permit holders declaration and forward it to the supplier. A scanned copy must also be sent to Revenue via MyEnquiries.

A supplier may only apply a relief at source where that supplier receives a full declaration in advance. In any other case the relief must be claimed from Revenue by the consumer.

If a consumer provides false or misleading information to a supplier, the consumer and not the supplier will be liable for any underpaid tax.

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