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, on the Transportation Sector. Hydrocarbons , 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 is applied throughout the Spanish territory , without prejudice to the regional tax regimes of concert and economic agreement in force, respectively, in the Territories of the Basque Country and in the Foral Community of Navarra and the provisions of international treaties and conventions that have become part of the internal legal system.

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

The extraction in Spanish territory of gas, oil and condensates, in the exploitation concessions of oil fields, is subject to the Tax hydrocarbons referred to in title II of Law 34/1998, of October 7, on 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 of the tax will be constituted by the value of the extraction of gas, oil and condensate.

The value of the extraction will 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 amount of gas, oil and condensate will be determined based on the volume measured in the hydrocarbon extraction measurement devices.

For these purposes, the value of the 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. Said 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 exploitation concession in which the activities are carried out.

The tax period will coincide with calendar year, except in the event of cessation of the exercise 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 accrue on the last day of the tax period.

The full fee is the amount resulting from applying to the tax base the tax scale established in article 17 of the Law tax regulator.