V2850-23 ·23 October 2023 ·consulta-vinculante Medium impact
Tax

VAT liability for electricity distribution from a Canary EP: different location rules for goods supply and distribution services depending on recipient

A electricity distributor with an EP in the Canary Islands raises whether its distribution activities from that region are subject to VAT. The DGT examines location rules: electricity supply as delivery of goods is governed by Article 68 LIVA (effective consumption or reseller in TAI); distribution services or access to the network as service provision are governed by Articles 69 and 70 LIVA, with particularity in Article 69.2(k) excluding the TAI for such services when the recipient is not a business and is outside the Community, except if resident in the Canary Islands, Ceuta or Melilla. The DGT distinguishes whether distribution is provided independently or jointly with supply, applying the CJEU's 'unitary operation' doctrine when both are inseparable.

In 8 key points

How it affects those involved

The ruling clarifies VAT location rules for electricity distribution from an EP in the Canary Islands, distinguishing between goods supply and service provision based on recipient status, with specific exclusions for non-business recipients outside the Community. It also applies the CJEU's unitary operation principle when distribution and supply are inseparable.

Lifecycle

2023-10-23PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.
PDF on boe.es

Does this provision affect you?

The tax team reviews your specific situation.

Talk to the tax team
This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
Email
Contact