Solid Fuel Carbon Tax (SFCT)

Liability

A liability to Solid Fuel Carbon Tax (SFCT) arises at the time a quantity of solid fuel is first supplied in the State by a supplier.

For SFCT purposes, supply in the State means a supply from one supplier established in the State to:

• another supplier established in the State
• or
• a consumer in the State.

When suppliers supply solid fuel to themselves, for their own use, this is also regarded as a first supply.

A supplier is an accountable person under:

• the Value Added Tax (VAT) Acts (that is, registered for VAT in the State)
• or
• a taxable person carrying on a business in the State below the threshold for VAT registration.

Any person who is VAT registered or a taxable person in the State and, who makes a first supply of solid fuel in the State:

• is an accountable person for SFCT
• and
• must register with Revenue for the purposes of SFCT.

Suppliers bringing solid fuel into the State, or producing it within the State, for onward supply in the State should register. Fuel traders receiving all their solid fuel from main suppliers based in the State do not need to register for SFCT.  This is because they are receiving their fuel tax paid from their main suppliers.

For fuel traders receiving supplies from a supplier outside the State, a liability arises when they supply that fuel onward.  They must register with Revenue to account for and pay SFCT. No liability arises where an individual purchases and brings solid fuel into the State from a supplier outside the State provided:

• the fuel is for their own private use
• and
• they accompany the fuel into the State.

If that individual, instead of using it themselves, supplies the fuel to another person in the State:

• they will have made a first supply of solid fuel in the State as a supplier,
• they will be liable to pay SFCT on that supply
• and
• they must register with Revenue accordingly.

Liability for first supply of manufactured solid fuel

Manufacturers of solid fuel who make first supplies of their solid fuel products in the State must register for SFCT. SFCT shall be charged at the time the manufactured solid fuel product is first supplied in the State by the manufacturer. Additional information is available in the SFCT Compliance Procedures Manual in the manufacturers section.

Liability for first supply of peat and peat products

SFCT applies to the first supply in the State of peat and peat products for use as fuel.  SFCT is chargeable on the tonnage weight at first supply.  Anyone involved in extracting peat for supply and who makes first supplies of the peat is liable for SFCT.

Anyone extracting peat for their own use is not liable to SFCT tax and does not need to register with Revenue.  SFCT does not apply to peat or peat products used for non-fuel purposes, for example compost.

Next: Rate of tax