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V1565-21 ·25 May 2021 ·consulta-vinculante Medium impact
Tax

Irrigation communities act as businesses when selling surplus electricity and must apply the reverse charge mechanism

An Irrigation Community has requested a ruling on whether it qualifies as a business entity when constructing a photovoltaic plant for self-consumption and the sale of surplus energy. The Directorate-General for Taxes (DGT) has determined that the sale of electricity constitutes a business activity subject to VAT, which requires the application of the reverse charge mechanism for the construction of the plant.

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2021-05-25PublishedPublished 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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