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V0333-14 11 February 2014 · SG de Impuestos Especiales y de Tributos sobre el Comercio Exterior Criterion in force
OTRO · poder calorífico superior

Higher calorific value (HCV) must be used to determine the taxable base for coal tax

A query was raised regarding whether the energy content of coal for special tax purposes should be measured by the lower calorific value (LCV) or the higher calorific value (HCV). The Directorate-General for Taxes (DGT) ruled that the higher calorific value (HCV) must be used.

The question raised

The energy content of the supplied coal: is it determined by the lower heating value (LHV) of said coal or by the higher heating value (HHV)?

The DGT's ruling

To determine the taxable base of the Excise Duty on Coal, the taxable person must use the higher heating value (HHV) of the delivered product. Although the lower heating value (LHV) measures the heat actually usable, Directive 2003/96/EC requires that the energy content be quantified by its gross calorific value.

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