Doctrine by topic · DGT Observatory

Factory: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Refined position High confidence 8 rulings · 2014–2020

Current position

The status of a factory requires the performance of manufacturing or transformation processes. To maintain this status, the manufacturing activity must represent at least 50% of the volume of the establishment's annual outflows. It is not possible to use the factory figure for activities that are predominantly commercial or involve mere storage.

The DGT's position has evolved from defining specific processes such as manufacturing (biofuels or beverages) towards setting a quantitative threshold for activity. Since 2019, it has been established that manufacturing must account for at least 50% of the volume of annual outflows to prevent the improper use of the figure for storage or trade.

Turning points

  1. V0812-19

    Introduces the quantitative requirement that manufacturing activity must account for at least 50% of the volume of annual outflows.

  2. V3316-19

    Confirms that manufacturing or transformation must represent at least 50% of the total volume of annual outflows, allowing for storage under a suspensive regime without altering the factory status.

Analysis based on 8 of 8 rulings with a stated position. Updated 2 October 2026.

Rulings on this topic

8
V2128-15 10 Jul 2015

Hydrocarbon production from waste requires factory operation and registration

SG de Impuestos Especiales y de Tributos sobre el Comercio Exterior
impuesto sobre hidrocarburosfabricaciónfábricaregistro territorialbiocombustibles Ley 38/1992 de Impuestos EspecialesReglamento de los Impuestos Especiales (RD 1165/1995)
Affects CompanyExpat · Non-residentIndividual
V0274-14 5 Feb 2014

Used oil products subject to Excise Duty on Hydrocarbons based on end-use

SG de Impuestos Especiales y de Tributos sobre el Comercio Exterior
impuesto sobre hidrocarburosaceites vegetales residualesámbito objetivofábricadepósito fiscal Ley 38/1992 de Impuestos EspecialesReglamento de los Impuestos Especiales
Affects CompanyExpat · Non-residentIndividual
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