As the transportation industry shifts toward more sustainable fuel alternatives, Hydrotreated Vegetable Oil (HVO) is gaining traction as an eco-friendly diesel substitute. With this growing adoption, fleet operators and businesses are increasingly asking: Can you get an excise duty refund on HVO fuel? The answer varies by country.
Some European countries offer partial excise duty refunds for HVO, while others have different regulations in place. To help you navigate this complex landscape, we have compiled the latest insights on excise duty refunds for HVO fuel in Belgium, Croatia, France, Hungary, Italy, Slovenia, and Spain.
Understanding Excise Duty Refunds for HVO Fuel
Excise duty is a tax imposed on specific goods, including fuel, and its refund policies vary based on national regulations. Some governments incentivize the use of alternative fuels like HVO by offering partial refunds, helping businesses reduce costs while supporting sustainability efforts. Below is a breakdown of how different European countries handle excise duty refunds for HVO fuel.
Excise Duty Refund Rules by Country
Belgium
HVO fuel is eligible for partial excise duty refunds, provided it falls under specific product codes: 2710 19 43 to 2710 19 48 and 2710 20 11 to 2710 20 19. While no specific mention of HVO is made, it is interpreted as a biofuel, meaning that HVO may qualify for a refund if it meets these coding requirements.
Croatia
Pure biofuel (100%), such as HVO, is not subject to excise duty and therefore does not qualify for a refund.
However, when HVO is blended with other fuels, the excise duty is applied to the entire mixture based on the prevailing tax rate of the non-biofuel component. HVO blends are eligible for excise duty refunds. Diesel blended with HVO is eligible for the same refund as the fuel to which the biofuel was added when used for commercial transport of goods.
France
Based on the latest institutional guidelines (Regulation of September 1, 2023), HVO fuel is eligible for partial excise duty refunds.
Hungary
Currently, HVO 100 fuel is not available on the market for road transport, meaning no excise duty refund can be claimed.
Italy
Hydrotreated fuels, including HVO, are recognized as eligible for partial excise duty refunds when used as a diesel substitute in commercial transportation. These refunds apply only when the fuel is used in vehicles that meet specific regulatory requirements for freight transport.
Slovenia
HVO does not fall under the biodegradable fuel category according to the Slovenian legal Act. Therefore, it is not eligible for a zero excise rate. However, it is classified similarly to diesel and follows the same excise duty refund process as gas oil for propellant purposes.
Spain
HVO is eligible for excise duty refunds as long as it falls under any of the CN codes 2710.19.31 to 2710.19.48 and 2710.20.11 to 2710.20.19. Additionally, its use must comply with Article 52 bis of the Excise Duty Law, which outlines refund conditions for commercial fuel.
How to Stay Updated and Maximize Savings
Excise duty regulations differ across Europe, making it crucial for businesses operating internationally to review country-specific policies. Checking the latest updates from national tax authorities ensures compliance and helps fleet operators take full advantage of available refunds.
Key Takeaways:
- Check eligibility – Refunds depend on your country’s specific tax codes.
- Monitor regulatory changes – Tax policies are subject to government updates.
- Consult experts – Staying informed can help optimize cost savings for your fleet.
Important Notice: The information provided is based on official sources as of February 17, 2025. Regulations may change, and Edenred Finance cannot be held responsible for modifications made by tax authorities. Always verify the latest rules before making fuel-related decisions.