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V5259-16 13 December 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entrega de bienes

Electricity supply via land transfer is subject to VAT and its taxable amount is determined by special rules

A local council and its residents transfer land to an electricity company in exchange for discounted electricity supply and other services. The DGT has ruled that these transactions are subject to VAT and that the taxable amount must be calculated according to the rules for non-monetary consideration and self-consumption.

The question raised

Liability and, where applicable, the taxable amount of the Value Added Tax corresponding to the aforementioned operations.

The DGT's ruling

The supply of electricity is a supply of goods for consideration subject to VAT, even if the consideration is the transfer of land. For the subsidized portion, the taxable amount shall be determined by the self-consumption rules of Article 79.three, with the base being that which would have been established in the acquisition of said goods. For additional subsidized operations, Article 79.one shall apply as the consideration does not consist solely of money.

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