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An electricity distribution company has requested clarification on whether charges collected due to legal obligations should be included in the tax base for the fee for the private use of local public domain. The Directorate-General for Taxes (DGT) has ruled that network access charges are revenue inherent to the distribution activity and must be included in gross billing revenue.
This ruling clarifies that electricity distributors must include network access charges when calculating the tax base for local public domain use fees, potentially increasing the tax burden for these companies.
The tax team reviews your specific situation.
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