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A company has requested clarification on whether a diesel fuel preservative is subject to the Hydrocarbons Tax. The Directorate-General for Taxes (DGT) has ruled that, as the product is added to fuel to enhance its properties and is subsequently burnt in the engine, it qualifies as a fuel additive regardless of the quantity used.
This ruling clarifies the tax treatment for fuel improvers, confirming that their functional role in the combustion process determines their classification as additives, thereby subjecting them to the Hydrocarbons Tax.
The tax team reviews your specific situation.
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