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  • Calculating the excise duty payable on excisable fuel and petroleum products

    If you hold an excise licence and need to calculate the amount of excise duty payable on excisable fuel or petroleum products, make sure you understand how to do it correctly.

    You pay the excise duty at the same time you lodge your excise duty return, on a weekly or monthly basis (once you have a periodic settlement permission – or PSP).

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    How to calculate the amount of excise duty you need to pay

    To calculate the amount of excise duty you need to pay, you need to know the:

    • type of excisable product
    • total volume of the product
    • current excise rate applicable to that product.

    We provide detailed information about how to measure product volume in our Excise Determinations:

    • EXC 2016/7Excise (Volume of Liquid Fuels – Temperature Correction) Determination 2016 (No. 2)
    • EXC 2016/8Excise (Volume of LPG – Temperature and Pressure Correction) Determination 2016 (No. 2)
    • EXC 2016/9Excise (Mass of CNG) Determination 2016 (No. 2)

    Formula

    For liquid fuel and petroleum products, excise duty is worked out on the total volume of product, using the following formula:

    Total volume (litres) of product × current excise duty rate.

    Make sure you keep adequate records that enable you to show how you worked out the amount of excise duty you had to pay.

    Decimal places for calculations

    You should make all calculations to three decimal places, up to when you include the information on the excise return. On the excise return, you may consolidate product lines by tariff item/subitem.

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    Last modified: 15 Sep 2020QC 63571