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V0915-22 ·28 April 2022 ·consulta-vinculante Medium impact
Tax

Settlements for reduction of electricity market remuneration under RD-Law 17/2021 are not subject to VAT

A company in the wind energy sector has enquired whether the amounts payable due to the reduction of excess electricity market remuneration under Royal Decree-Law 17/2021 are subject to VAT. The Directorate-General for Taxes (DGT) has ruled that these payments are not taxable transactions because they do not constitute consideration for the supply of goods or services.

In 6 key points

How it affects those involved

This ruling clarifies that the mandatory reductions in electricity market remuneration are not VAT-taxable events, providing legal certainty for energy companies regarding their settlement obligations.

Lifecycle

2022-04-28PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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