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V3005-21 3 December 2021 · SG de Impuestos Especiales y de Tributos sobre el Comercio Exterior y sobre el Medio Ambiente Criterion in force
OTRO · impuesto sobre la electricidad

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

A printing company has enquired whether it is eligible for the reduction in the Electricity Tax taxable base. The Directorate-General for Tax (DGT) has ruled that it may qualify provided its activity is classified as industrial and electricity consumption accounts for at least 5% of the production value, which includes the cost of raw materials if purchased by the company for resale.

The question raised

Application of the exemption set forth in letter f) 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(f) of the LIE, the activity must be industrial, understood as such those classified in divisions 1, 2, 3, or 4 of the IAE. The production value is composed of the turnover (according to the PGC) plus the variation in inventories of work in progress and finished goods. In the calculation, the amount of raw material must be included in the turnover when the company acquires it for resale following transformation. The benefit applies to the energy consumed in the manufacturing, distribution, and commercialization of manufactured products, excluding the distribution of products acquired solely for resale.

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