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V3122-21 16 December 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · contrato de cobertura

Positive settlements from gas hedging contracts are not subject to VAT nor affect pro rata apportionment

An energy services company has enquired whether income obtained from the settlement of a gas hedging contract (when the fixed price is lower than the variable price) is subject to VAT. The DGT has determined that this income does not constitute consideration for a service, but is rather a risk hedging tool.

The question raised

Issue raised: Taxability of the settlement of a contract for differences under Value Added Tax, should it yield a positive result in favor of the consulting entity.

The DGT's ruling

Positive settlements arising from differences in raw material hedging contracts do not constitute a supply of services by the recipient. As these are not transactions subject to tax, they must not be included in the calculation of the deduction pro rata. Furthermore, the receipt of these amounts does not require the issuance of an invoice.

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