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V3784-15 30 November 2015 · SG de Impuestos Especiales y de Tributos sobre el Comercio Exterior Criterion in force
OTRO · impuesto especial sobre la electricidad

Electricity Tax reduction applicable if electricity consumption is at least 5% of production value

A copper wire manufacturing company has requested clarification on whether it can apply a reduction to the taxable base of the Special Electricity Tax. The Directorate-General for Taxes (DGT) clarifies the definition of industrial activity and how the value of production must be calculated to meet the 5% electricity consumption requirement.

The question raised

Question posed: Application of the exemption set forth in letter f) of article 98 of Law 38/1992, of December 28, on Excise Duties.

The DGT's ruling

Industrial activity is that classified under divisions 1, 2, 3, or 4 of the IAE. The value of production is composed of the turnover plus the variation in stocks of work in progress and finished goods. Turnover includes the cost of raw materials only when the company acquires them for transformation and resale. Raw materials are not included if they are resold without transformation in an activity distinct from industrial activity.

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