9.What can be deducted

Part B: Carbon price paid in a third country

A carbon price is a tax, levy, fee or emissions trading cost paid in a non-EU country on greenhouse gases released while producing the goods. Only the amount effectively paid counts, net of any rebate or compensation (free allowances and tax exemptions count as compensation). A price paid in another non-EU country than the country of origin also counts.

WATCH OUT Document the net amount after refunds and free allowances, not the headline rate.

Sources: REG Art 3(29), 9(1); REG-AMD recitals 21-22; QA Q1.5 p.12; G2 Step 6 p.12.