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V2700-23 4 October 2023 · SG de Impuestos Especiales y de Tributos sobre el Comercio Exterior y sobre el Medio Ambiente Criterion in force
OTRO · valorización energética

Energy recovery sludge ash is exempt from tax if disposed of in landfills

A public entity managing a wastewater treatment plant that performs energy recovery through sludge incineration has requested a ruling on its status as a taxpayer and potential exemptions. The DGT has determined that the entity is a taxpayer and that the ash resulting from energy recovery is exempt when delivered to landfills.

The question raised

It raises various issues regarding the Tax on the Deposit of Waste in Landfills, the incineration and co-incineration of waste.

The DGT's ruling

The entity that self-manages the incineration of sludge for energy recovery is a taxpayer because it performs the taxable event of delivering waste for recovery. The ashes and slag resulting from said energy recovery process shall be exempt from the tax when delivered for disposal in authorized landfills, as they are waste resulting from operations that have already been taxed under this tax. The exemption provided in the sixth transitional provision does not apply because the sludge is delivered to a recovery facility and not to landfills under its ownership.

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