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V2868-14 23 October 2014 · SG de Impuestos Especiales y de Tributos sobre el Comercio Exterior Criterion in force
OTRO · biogás

Biogas used in cogeneration is subject to Hydrocarbon Tax and electricity fed into the grid to IVPEE

A biogas plant has requested clarification on whether the produced gas is subject to Hydrocarbon Tax and if surplus electricity fed into the grid is subject to the IVPEE. The DGT ruled that using biogas in cogeneration engines constitutes use as a fuel and that electrical energy incorporated into the electricity system is subject to the IVPEE.

The question raised

Confirm whether biogas must be taxed under the Hydrocarbons Tax and whether the surplus electrical energy fed into the grid must be taxed under the Tax on the Value of Electrical Energy Production.

The DGT's ruling

Biogas used in cogeneration processes to generate electrical and thermal energy is taxed at the rate of 0.65 euros per gigajoule. On the other hand, the IVPEE taxes the remuneration for the production and incorporation into the electrical system of the energy measured at the power plant busbars. There is no double taxation when taxing biogas by one tax and the unconsumed energy incorporated into the grid by another.

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