Electricity tax relief for the withdrawal of electricity for electrolysis

The 4th Senate of the Düsseldorf Fiscal Court ruled on 21 February 2024 that the electricity tax relief for the withdrawal of electricity for electrolysis in accordance with Section 9a (1) no. 1 of the German Electricity Tax Act (StromStG) could not be granted for electricity consumption in chemical production by means of the so-called electric arc process because it is undisputed that no reduction-oxidation processes take place at the electrodes in the process used by the plaintiff. Contrary to the plaintiff's opinion, it is also irrelevant whether the extraction of the electricity serves two purposes. As a result, the 4th Senate of the Düsseldorf Fiscal Court dismissed this action, but allowed an appeal in accordance with Section 115 (2) FGO. In the meantime, an appeal has been lodged against this judgement. The BFH is conducting these proceedings under case number VII R 6/24. Düsseldorf tax court, judgement from 21/02/2024, 4 K 483/23 VSt