Skip to content
Back to index
V3913-15 7 December 2015 · SG de Impuestos Especiales y de Tributos sobre el Comercio Exterior Criterion in force
OTRO · impuesto sobre la electricidad

Electricity Tax reduction not applicable to sewerage activities

A water supply and sewerage company has requested clarification on whether its operations qualify as industrial activities to apply an 85% reduction to the taxable base of the Electricity Tax. The Directorate-General for Taxes (DGT) has ruled that sewerage activities do not constitute industrial activities for the purposes of this tax.

The question raised

Possibility of benefiting from the tax relief established in letter f) of article 98 of Law 38/1992, of December 28, on Special Taxes.

The DGT's ruling

To identify industrial activities for the Electricity Tax, the IAE classification is used, being limited solely to divisions 1, 2, 3, and 4. The activity of sewerage, purification, and evacuation of wastewater is classified under division 9 of the IAE. Therefore, as it does not belong to the aforementioned divisions, it is not considered an industrial activity and cannot benefit from the tax relief provided in article 98.f) of the LIE.

Book your free first meeting