Many ANBIs pay substantial amounts in energy tax each year without realizing that a portion of it may be eligible for a refund. In practice, however, it appears that not all institutions are aware of this program, resulting in this opportunity going untapped.
Energy Tax Refund Scheme
The energy tax is not paid directly to the Tax Authority but through the energy supplier and is listed on the (annual) final bill. The refund amounts to 50% of the energy tax charged, taking into account the so-called EB tax credit.
Terms
To qualify for an energy tax refund, it is first and foremost important that the energy be consumed in a property that is primarily (more than 70%) used by the ANBI itself. This means that there is no entitlement to a refund if more than 30% of the property is leased, even if the tenant is also an ANBI. The right to a refund also lapses if the amount for energy consumption is already included in the building’s rent.
In addition, an ANBI is only eligible for an energy tax refund if the following conditions are met:
- The organization is not active in sports, healthcare, or education, or is active in these areas only to a limited extent (no more than 30%).
- The institution is not a public-law entity.
- The organization has its own utility connection.
- The organization is not subject to corporate income tax or is exempt from it.
If any of these conditions are not met, a refund is not possible.
Corporate Income Tax Liability
If an ANBI is subject to corporate income tax, it is not eligible for the energy tax refund, even if it meets the other conditions.
In practice, ANBIs are typically organized as foundations or associations. Foundations and associations are only subject to taxation if and to the extent that they operate a business. This is the case if the following conditions are met:
- The foundation or association is a sustainable organization of capital and labor.
- The foundation or association through which this organization operates participates in economic activity.
- The foundation or association makes a profit or aims to make a profit.
For further information on corporate income tax liability, please refer to the following article on our website: https://www.govers.nl/en/non-profit/besluit-vennootschapsbelastingplicht-van-stichtingen-en-verenigingen-verruimd-en-aangescherpt/
Many ANBIs assume that they are not subject to corporate income tax. In practice, however, this is not always the case, because ANBIs can also operate a business and may therefore be subject to corporate income tax. This can be the case, for example, when operating a museum shop or a restaurant or café. Once an ANBI is subject to corporate income tax, it is no longer eligible for an energy tax refund.
Request for an Energy Tax Refund
A request for an energy tax refund must be submitted using a refund form, which can be found on the Tax and Customs Administration’s website. The request can be submitted once a year. The request must be submitted within 13 weeks after the end of the consumption period to which the final bill relates. In addition, the following conditions apply:
- If the ANBI uses multiple buildings, a separate request for an energy tax refund must be submitted for each building.
- If separate bills are received for gas, electricity, and mineral oil, a separate refund request must be submitted for each of these bills.
- A copy of the final bill, issued in the name of the requesting ANBI, must be included.
In conclusion
If you have any questions after reading the above, please feel free to contact your Govers representative at 040 2504 504.