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Production Process: 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 · 2014–2026

Current position

Taxable installed capacity is determined by summing the nominal capacities of the electrical or mechanical elements directly used in the production process. Heating, lighting, social services, or climate control elements for occupational hygiene are excluded if they are not essential to the process. The depreciation of assets begins when they, following assembly and installation, can normally participate in the production process.

The DGT's position remains constant regarding the definition of installed capacity, focusing the use on direct participation in the manufacturing stages. There is consistency in the exclusion of service or climate control elements, unless they are necessary for the properties of the product or the process. The latest ruling introduces a criterion regarding the start of depreciation based on the capacity for normal participation in production.

Turning points

  1. V1448-23

    Establishes that depreciation begins when the assets can normally participate in the production process following their assembly and testing.

Analysis based on 7 of 8 rulings with a stated position. Updated 1 October 2026.

Rulings on this topic

8
V1455-26 9 Jun 2026

Hornos excluded from installed power calculation under IAE

SG de Tributos Locales
potencia instaladaafectación directaproceso productivoelementos energéticosinstalación anticontaminante TRLRHL — RDLeg 2/2004 de Haciendas Locales art. 78.1Tarifas del IAE — RDLeg 1175/1990 art. regla 14.1.A
Affects CompanyExpat · Non-residentIndividual
V0406-16 2 Feb 2016

Installed capacity does not include elements not directly related to production

SG de Tributos Locales
potencia instaladaafectación directaproceso productivoelemento energéticoimpuesto sobre actividades económicas Tarifas del IAE — RDLeg 1175/1990 art. regla 14ª.1.A)Tarifas del IAE — RDLeg 1175/1990 art. regla 14ª.1.F)
Affects CompanyExpat · Non-residentIndividual
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