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V0321-14 10 February 2014 · SG de Impuestos Especiales y de Tributos sobre el Comercio Exterior Criterion in force
OTRO · ivpee

IVPEE taxes electricity incorporated into the grid, not total production in direct line cases

A query was raised regarding whether the Tax on the Value of Electricity Production (IVPEE) should apply to all energy produced or only to the surplus. The Directorate-General for Taxes (DGT) ruled that the tax applies to production that is incorporated into the electricity system; therefore, energy that is not fed into the grid is not subject to the tax.

The question raised

Taxation under the Tax on the Value of Electricity Production on the total electricity produced or on the surplus electricity.

The DGT's ruling

The IVPEE taxes the production and incorporation into the electricity system of energy measured at the plant's busbars. Production payments that are not incorporated into the transmission or distribution network, as occurs in direct line schemes or internal lines that are not direct lines, are not subject to the tax. In the case of cogeneration with an associated consumer, the payment for unused surpluses incorporated into the electricity system is taxed. If an amount greater than the surplus is fed into the system, the payment for all energy incorporated into the system is taxed.

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