III: Petroleum products

1. For the application of this article:

1° Petroleum products means petroleum products and assimilated products, excluding natural gas;

2° Excise suspension schemes means the schemes mentioned in Article L. 142-1 of the code of taxes on goods and services which suspend the excise duty on energy mentioned in Article L. 312-1 of the same code.

1 bis. The suspensive tax regime provided for in a of 2° of I of Article 277 A of this code applies to petroleum products placed under a suspension of excise duty, under the conditions provided for in the same Article 277 A and subject to the following adaptations:

1° The authorisation provided for in the last paragraph of 2° of I of the said Article 277 A is not required;

2° By way of derogation from 2° to 6° of I of the same Article 277 A, transactions carried out prior to exit from the scheme which:

a) either relate to petroleum products, with the exception of transport operations not carried out by pipeline;

b) or are used for the extraction, manufacture, transport by pipeline or storage of petroleum products;

3° The exit from the scheme referred to in 1 of II of Article 277 A of this code is constituted by the exit from the excise suspension scheme;

4° By way of derogation from 2 of II of Article 277 A of this code, the tax is payable by the person liable for excise duty on energy designated in 2° of Article L. 311-26 of the code of taxes on goods and services and, where applicable, articles L. 311-32 and L. 311-33 of the same code and the operator of the excise suspension warehouse is jointly and severally liable for payment of the tax;

5° By way of derogation from 3 of II of Article 277 A of this code, the tax base is determined in accordance with 2 of this article;

6° The obligations taken in application of III of Article 277 A of this code are those governing the aforementioned excise suspension arrangements.

2. The basis of assessment for value added tax relating to petroleum products and payable on exit from the scheme referred to in 3° of 1 bis or on importation is determined, on the date of payment, in accordance with the following provisions:

1° With the exception of petroleum gases and other gaseous hydrocarbons listed under numbers 27-11-14, ex 27-11-19, ex 27-11-21,27-11-29 of the Customs Tariff and not intended for use as motor fuels, the taxable value is set on a flat-rate basis, for each year by decision of the Director General of Customs and Indirect Rights, on the proposal of the Director of Motor Fuels.

As regards products other than compressed gas intended for use as motor fuel, this value is established on the basis of the average CIF price of the products imported, or subject to intra-Community acquisition, increased by the amount of customs duties applicable to products of the kind under the common law minimum tariff system and the taxes and fees payable on leaving the system mentioned in 3° of 1a or on importation, with the exception of value added tax.

The taxable value may be revised during the course of the year by decision of the Director General of Customs and Indirect Taxes on a proposal from the Director of Hydrocarbons, in the event that the C. A. F. prices of petroleum products vary by an amount equal to or greater than 10% above or below the prices used as a basis for calculating this value.

2° (Repealed).

3° (Repealed).

3. Subject to the provisions of 4, the deduction rights available to the petroleum industry and trade are determined in accordance with the conditions laid down in Articles 271 and 273.

4.1° Value added tax on purchases, imports, intra-Community acquisitions, deliveries and services relating to:

a) Up to 20% of the amount, of fuels in the tax categories of diesel and petrol within the meaning of Article L. 312-22 of the code of taxes on goods and services for vehicles and machinery excluded from the right to deduct as well as for vehicles and machinery taken on lease when the lessee cannot deduct the tax relating to this lease, with the exception of those used for tests carried out for the purposes of the manufacture of engines or motorised machinery ;

b) (Repealed);

c) Up to a limit of 50% of its amount, fuels falling within the tax categories of natural gases and liquefied petroleum gases within the meaning of Article L. 312-22 du code des impositions sur les biens et services for vehicles and equipment excluded from the right to deduct as well as for vehicles and equipment leased when the lessee cannot deduct the tax relating to this lease;

d) Fuels falling within the tax category of jet fuels within the meaning of article L. 312-22 of the code of taxes on goods and services for aircraft and machinery excluded from the right to deduct as well as for aircraft and machinery taken on hire when the hirer cannot deduct the tax relating to this hire;

e petroleum products used for the lubrication of vehicles and machinery excluded from the right to deduct as well as for vehicles and machinery taken on hire when the hirer cannot deduct the tax relating to this hire.

1° bis The provisions of 1° do not apply when the products are subsequently delivered or sold as is or in the form of other petroleum products.

1° ter to 1° sexies (Repealed as from 1 January 1993);

2° (Repealed)

3° (Repealed)

4° (Repealed)

5. (Repealed).

6. (Repealed)

7. (Transferred under Article L. 45 C of the Book of Tax Procedures).