CO2 tax on commercial fishing, ferry operation and aviation
Everyone who buys fuel will now get an invoice stating the new CO₂ tax. You may claim a partial refund of th CO₂ tax until 2029. But from 2030, you wil have to pay the full CO2 tax.
It's still possible to get exemptions from energy tax, NOx tax, and sulphur tax. However, this requires the fuel to be dyed. Fuel can be delivered tax-free if the oil supplier physically delivers the dyed fuel directly into the ship’s propulsion tank, and fishing vessels have been given authorisation to get tax-free fuel.
The CO2 tax will be introduced gradually prior to 2029.
| Year | Refund, fractons | Refund, percentage |
|---|---|---|
| 2025 | 400/750 | 53.33% |
| 2026 | 320/750 | 42.67% |
| 2027 | 240/750 | 32.00% |
| 2028 | 160/750 | 21.33% |
| 2029 | 80/750 | 10.67% |
| 2030+ | 0/750 | 0% |
This means that in 2025, for example, your refund will be 53.33% of the CO2 tax stated in your invoice.
Different rules apply if you are registered for VAT or not
As a business subject to VAT, you have to use the fields for refund avaiable in your VAT return. If, for example, you want a refund of the CO2 tax, you have to write the actual refund (the amount) in the field CO2-afgift (CO2 tax) in your VAT return.
This means that refund filing deadlines are the same as your normal VAT filing deadlines.
As a business, you're responsible for calculating and stating the correct amount to be refunded.
If you don't have a CVR number or a VAT (SE) number as a non-Danish business, you have to register your business first.
You do so via form 40.112 – Registration of non-Danish Company.
In field 14, you state that the reason for your registration is that your business needs a VAT number to apply for an authorised exemption.
When you have a CVR or VAT number, you complete and submit an exemption form to be refunded for your CO2 tax. You do so via form 23.024 - Authorisation for tax exeptions and/or tax refunds on fuel for commercial fishing, domestic ferry operations and domestic aviation.
When you have been granted exemption, you can apply for reimbursement via form 23.004 Request for refund of tax on commercial fuel for commercial shipping, domestic ferry operation and domestic aviation.
The Tax Agency will process your form once you submit it.
All fishing vessels are included in the CO2 tax on fuel
The CO2 tax on commercial fishing applies to both international an domestic commercial fishing. As an oil company you always have to include the CO2 tax in the invoice on supply to fishing vessels when you supply fuel within Denmark - or territorial waters within 12 nautical miles from the Danish coastline.
This means that the CO2 tax should always be included on supply of fuel to non-Danish fishing vessels when the fuel is supplied in Denmark.
CO2 tax rates
The new CO2 tax rates on fuel are stated in the CO2 Tax Act at skm.dk: CO2-afgiftsloven (currently in Danish).
As an oil supplier you have to charge the fishing vessels based on the current CO2 tax for the year which is stated in the above act. Also, the CO2 tax must be specified in the invoice from the oil supplier to the fishing vessel.
Exemption from energy tax, NOx tax and sulphur tax
As an oil company, you may still supply fuel to fishing vessels over 5 tonnes without charging energy tax, NOx tax and sulphur tax.
Conditions for fuel supply
Several conditions must be met for fuel to fishing vessels to be supplied without energy tax, NOx tax and sulphur tax. The fuel must be dyed, the oil supplier must physically deliver the fuel directly into the ship’s propulsion tank, and the fishing vessel must hold an authorization to receive tax-free fuel.
The conditions for tax exemption are not met when the fuel is delivered from a self-service facility. When fuel is dispensed from a self-service facility, the oil supplier has not physically delivered the fuel directly into the vessel’s propulsion tank. Therefore, the oil supplier must invoice energy tax, NOx tax and, if applicable, sulphur tax when supplying fuel from self-service facilities.
A self-service facility is defined as an unmanned facility. The vessel typically uses a card to access the facility for refueling.
Exemption authorisations
Existing exemption authorisations remain in effect for energy tax, NOx tax and sulphur tax.
The CO₂ tax isn't included in the exemption as of 1 January 2025.
This means that anyone currently authorised to purchase fuel and lubricating oil free of excise duties must be issued a new authorisation by the Danish Tax Agency. This is expected to take place early in 2025.
The new authorisation will be valid retroactively from 1 January 2025. Therefore, from 1 January 2025 oil suppliers may continue to deliver fuel and lubricating oil excluding energy tax, NOx tax and sulphur tax, but including CO₂ tax, to fishing vessels covered by an exemption authorization prior to 1 January 2025.
From 1 January 2025, fishing vessels may also be granted authorisation to receive a refund of energy tax paid on invoices, for example, in connection with fuel delivered from a self-service facility.
Please read more in Danish here:
The new rules on reimbursement of energy taxes and the CO2 tax are stated in Act no. 683 of 11 June 2024 and in Bill no. 23 – in the part on adjusting the the completion of agreement on Green Tax Reform for the industry etc.
You find the most recent versions of the acts at skm.dk/skattelove. And you find our legal guide in Danish at skat.dk/juridiskvejledning.
Please find the bill at ft.dk under Dokumenter (Documents)> Lovforslag (Bills) > L 23.