What was the dispute with the Tax Office about?
Under Polish excise duty law, classic passenger cars are subject to the basic rates of 3.1% (for engines up to 2000 cm³) and 18.6% (for engines above 2000 cm³). The regulations provide for a 50% excise duty discount for hybrid vehicles:
- 1.55% — for hybrids with engine capacity up to 2000 cm³,
- 9.3% — for hybrids with engine capacity from 2001 cm³ to 3500 cm³.
What was the problem? Since October 2022, the tax authority has relied on EU customs classification opinions (Combined Nomenclature CN) and claimed that a "mild hybrid" is in fact an ordinary combustion car. Officials argued that since the electric motor in an MHEV only assists the combustion engine and the car cannot start and drive solely on electricity, the discount does not apply. Many importers received negative decisions and demands to pay the full excise duty.
Ground-breaking decision of the Minister of Finance — taxpayers' victory
After a wave of lost cases in Administrative Courts (WSA) and the Supreme Administrative Court (NSA), the Minister of Finance and Economy issued an official General Interpretation that is binding on all tax offices in Poland.
Key conclusions from the General Interpretation:
- No requirement for independent electric driving: Polish excise duty law does not require the electric motor to enable independent starting or autonomous driving without the combustion engine.
- Every hybrid is a hybrid: The cooperation of the combustion and electric engines (even if the electric motor only plays a supporting role, starter or generator) is fully sufficient to benefit from the reduced excise duty rate!
- CN code does not affect the rate: CN customs codes are used to determine whether a vehicle is subject to excise duty at all (CN heading 8703), while the actual tax rate depends solely on the provisions of Polish law.
Therefore: every mild hybrid (MHEV) car imported from abroad has full right to the lower excise duty rate of 1.55% or 9.3%!
How much will you save on excise duty for an MHEV?
Applying the reduced rate means huge financial savings:
- For an MHEV car up to 2000 cm³ (e.g. worth PLN 100,000): Instead of the basic rate of 3.1% (PLN 3,100) you pay 1.55% (PLN 1,550) — you save PLN 1,550!
- For an MHEV car above 2000 cm³ (e.g. 3.0 MHEV worth PLN 200,000): Instead of the basic rate of 18.6% (PLN 37,200) you pay 9.3% (PLN 18,600) — as much as PLN 18,600 stays in your pocket!
What to do if you overpaid excise duty for a mild hybrid in the past?
The issuing of the General Interpretation confirms that the earlier refusals by tax offices were unlawful. If in recent years you settled excise duty for an MHEV car at the basic rate (3.1% or 18.6%), you have the right to submit an application for recognition of excise duty overpayment together with a correction of the AKC-US declaration and recover the money wrongly collected!
Delegate excise formalities to experts!
Although the regulations are now clear, correctly submitting the declaration on PUESC, attaching the appropriate technical documents and calculating exchange rates still require practice.
By entrusting your excise settlement to our company with over 16 years of experience, you gain:
- Guarantee of applying the lowest applicable excise duty rate (1.55% or 9.3%) for MHEV, HEV and PHEV cars.
- Comprehensive service on the PUESC portal — without leaving home and without stress.
- Help in recovering overpaid excise duty from previous years.
- Quick download of the certificate necessary for registration at the Vehicle Registration Office.
Do you have a Mild Hybrid (MHEV) system in your vehicle and want to settle excise duty efficiently? Contact us via WhatsApp or by phone — we will analyse your documents and handle the entire procedure stress-free!