• Service: Tax, Global Indirect Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 8/11/2014

Bulgaria - Renewable energy fee held unconstitutional 

August 11: The Constitutional Court of Bulgaria held that a provision that, beginning 1 January 2014, imposes a 20% fee on the production of electricity by solar photovoltaic plants and wind power plants—renewable energy—is unconstitutional.

The case identifying information is decision No. 13 under constitutional case No. 1/2014 (31 July 2014), and the decision was published in the state gazette No. 65 (6 August 2014) with an effective date of 10 August 2014 (i.e., three days after publication in the state gazette).

Accordingly, beginning 10 August 2014, producers of certain renewable energy are no longer required to pay the 20% fee. However, amounts of the 20% fee paid by such renewable energy producers before 10 August 2014 are not refundable.

Read an August 2014 report prepared by the KPMG member firm in Bulgaria: Important decision of the Constitutional Court regarding the 20% fee over the production of renewable energy

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