Tax on the value of the extraction of gas, oil and condensates

The Value Tax on the extraction of Gas, Oil and Condensates is a direct tax of a real nature that is levied on the value of public domain products (gas, oil and condensates) extracted in Spanish territory, once the first purification and separation treatment has been carried out.

The tax is regulated in Law 8/2015, of May 21, which modifies Law 34/1998, of October 7, of the Hydrocarbon Sector , and which regulates certain tax and non-tax measures in relation to the exploration, research and exploitation of hydrocarbons.

This tax is levied on liquid and gaseous hydrocarbons regulated in Law 34/1998, of 7 October, on the Hydrocarbons Sector.

The Tax applies throughout the Spanish territory , without prejudice to the tax regimes of economic agreement and concert in force, respectively, in the Territories of the Basque Country and in the Foral Community of Navarre and the provisions of the international treaties and agreements that have become part of the internal legal system.

For these purposes, the subsoil of the territorial sea, the exclusive economic zone, the continental shelf and other seabeds under national sovereignty are understood to be included in Spanish territory.

The extraction of gas, oil and condensates in Spanish territory is subject to the Tax , in the exploitation concessions of hydrocarbon deposits referred to in Title II of Law 34/1998, of October 7, of the Hydrocarbon Sector.

Taxpayers of the tax are legal persons and entities that carry out gas, oil and condensate extraction activities in Spanish territory.

The tax base will consist of the value of the extraction of gas, oil and condensates.

The value of extraction shall be understood as the sum of the value of the products included in the objective scope of the tax that have been extracted during the tax period once the first purification and separation treatment has been carried out.

The quantity of gas, oil and condensates will be determined based on the volume measured by hydrocarbon extraction measuring devices.

For these purposes, the value of extraction will be calculated by applying the total volume of extracted product to the reference price approved by order of the Minister of Industry, Energy and Tourism. This volume will be expressed:

1. Oil and condensates: in barrels of oil whose capacity and measurement conditions will be determined in the aforementioned order.
2. Natural gas: in cubic meters, measured at zero degrees Celsius temperature and one bar pressure.

The tax base will be determined for each operating concession in which the activities are carried out.

The tax period will coincide with calendar year, except in the event of cessation of the activity of the exploitation concession, in which case it will end on the day on which said cessation is deemed to have occurred.

The tax will be due on last day of the tax period.

The full rate is the amount resulting from applying the tax scale established in article 17 of the Tax Regulatory Law to the tax base.