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V2756-17 25 October 2017 · SG de Tributos Locales Criterion in force
OTRO · impuesto sobre actividades económicas

Installation and maintenance of solar facilities for third parties is subject to Business Activity Tax

A query was raised regarding whether the installation and maintenance of photovoltaic solar facilities for self-consumption without grid connection is subject to Business Activity Tax (IAE). The Directorate-General for Taxes (DGT) ruled that liability depends on whether the activity is performed for third parties or for own consumption.

The question raised

Liability for the Tax on Economic Activities.

The DGT's ruling

If the company performs the assembly and maintenance for its own use and the consumption is internal without discharge into the grid, the activity is not subject to the tax as it does not intervene in the market. If the activity is performed for third parties, the taxable event occurs as it involves intervening in the production or distribution of services. In the latter case, the company must register under heading 504.1 of the IAE Schedules.

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