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Contracted Power: 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

Settled doctrine High confidence 8 rulings · 2015–2026

Current position

The reduced VAT (IVA) rate of 10% applies to electricity deliveries for holders with contracted power less than or equal to 10 kW. The application of this rate is conditional upon the validity of the measure and the variation of the electricity CPI. Accrual occurs when each part of the price becomes due, with the rate being determined according to the regulations in force at that time.

The DGT's position remains stable regarding the inclusion of contracted power in the taxable base of the Special Tax on Electricity. Clarifications have been added concerning the timing of accrual in successive performance operations and the application of reduced rates according to the contracted power and the temporary regulations in force.

Turning points

  1. V2958-16

    Clarifies that the tax is due even without actual energy consumption, unless the effective absence of electricity supply is demonstrated.

  2. V1539-23

    Establishes that accrual is unique for each supply and the rate is determined by the contracted power at that moment, without allowing proportional applications of different rates.

Analysis based on 8 of 8 rulings with a stated position. Updated 1 October 2026.

Rulings on this topic

8

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