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V1968-14 18 July 2014 · SG de Impuestos Especiales y de Tributos sobre el Comercio Exterior Criterion in force
OTRO · impuestos especiales

Electricity used in auxiliary chemical reduction processes may qualify for partial exemption

A pulp company has requested clarification on whether its production process qualifies for the 85% exemption on electricity consumption. The Directorate-General for Taxes (DGT) has ruled that only electricity used in auxiliary processes necessary for chemical reduction is eligible.

The question raised

Possibility of applying for the partial exemption established in paragraph 3 of article 64 fifth of Law 38/1992.

The DGT's ruling

The 85% partial exemption for electric energy applies solely to electricity consumed in the auxiliary processes necessary for chemical reduction to take place. In the Kraft process, chemical reduction does not consume electricity directly, but rather it is used in auxiliary processes such as pumps, compressors, or resistors to generate the conditions necessary for said reduction.

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