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V0974-22 3 May 2022 · SG de Impuestos Especiales y de Tributos sobre el Comercio Exterior y sobre el Medio Ambiente Criterion in force
OTRO · impuesto especial sobre la electricidad

Requirements for the 85% reduction in Electricity Tax for industrial activities

A paper manufacturing company has enquired whether, following the acquisition of another company involved in paper processing, both activities can be treated as a single industrial activity to qualify for the Electricity Tax reduction. The Directorate-General for Taxes (DGT) has ruled that, as these represent stages of the same production process, they constitute a single industrial activity.

The question raised

Application of the reduction established in letter f) of paragraph 1, of article 98 of Law 38/1992, of December 28, on Special Taxes.

The DGT's ruling

To apply the reduction provided in article 98.1.f) of the LIE, the industrial activity must be classified under divisions 1, 2, 3, or 4 of the IAE. In this case, the manufacture of coils and their subsequent transformation are considered a single industrial activity as they form part of the same IAE grouping. The value of production shall be the turnover of the ordinary activity plus the change in inventories of work in progress and finished goods.

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