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Tax on coal

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Tax benefits: Exemptions

Find out about the cases and conditions under which you can benefit from a exemption from the tax on coal.

Exemption assumptions

Article 79 of the Excise Tax Law establishes that the following shall be exempt from the Tax:

  • The first sale or delivery made to entrepreneurs or professionals who intend the coal for resale in the territory of application of the tax
  • The first sale or delivery made to entrepreneurs or professionals who intend the acquired coal to be shipped outside the territory of application of the tax, under certain conditions
  • Operations for putting coal into consumption used in the following applications:
    • chemical reduction and electrolytic and metallurgical processes
    • mineralogical processes
    • fuel in the domestic or residential area
    • uses that do not involve combustion

Registration in the Territorial Registry

You must apply for registration in the Territorial Registry of Special Taxes to benefit from the following exemption assumptions:

  • The first sale or delivery made to entrepreneurs or professionals who intend the coal for resale in the territory of application of the tax
  • The first sale or delivery made to entrepreneurs or professionals who intend the acquired coal to be shipped outside the territory of application of the tax
  • Operations for putting coal into consumption used in the following applications:
    • chemical reduction and electrolytic and metallurgical processes
    • mineralogical processes
    • uses that do not involve combustion

Once registration has been agreed, the Managing Office will provide you with the registration accreditation card, which will include the Coal Activity Code (CAC).

In the case of the exemption provided for the use of coal as fuel in domestic or residential areas, registration in the Territorial Registry of Special Taxes will not be necessary.

Other requirements and conditions

Coal purchased under an exemption must be used for the purpose for which the exemption is provided.

Beneficiaries of exemptions must retain all documentation proving the destination that motivates the exemption, including invoices justifying the sale or delivery.

Where registration in the Territorial Register is required, the application of the exemption is conditional upon the taxable person requesting the purchaser or the person to whom the goods are released for consumption to present or show the Registration Card.