Tax on the value of electricity production

It is a direct and real environmental tax that taxes the performance of production activities and incorporation of electrical energy into the electrical system, measured in power plant bars, through the facilities referred to in the Electricity Sector Law.

The tax is applied throughout Spanish territory, without prejudice to the special tax regimes applicable in the historic territories of the Basque Company and the Community of Navarre, respectively.

The taxable event is constituted by the production and incorporation of electricity, measured in power plant bars, to the electrical energy system (including the peninsular electrical system and the insular and extra-peninsular territories).

The production measured in plant bars corresponds to the electricity measured in alternator terminals minus the auxiliary consumption in generation and the losses up to the grid connection point.

Taxpayers are natural or legal persons and the entities referred to in article 35.4 of the General Tax Law that carry out the activities that constitute the taxable event. Both electricity production facilities under the ordinary regime and electricity production facilities using renewable technology, cogeneration or waste are included.

As a general rule, the tax period coincides with the calendar year and the tax accrues on December 31.

In the event of cessation of the exercise of the activity, the tax period ends on the day on which said cessation occurred and the tax accrues on the day on which the cessation occurred.

Exceptionally and temporarily, the tax was suspended for the third and fourth quarters of 2021 and for the years 2022 and 2023. This measure has meant that the remuneration corresponding to the electricity incorporated into the system during the aforementioned suspension period is exempt from the tax.

The full fee is the amount resulting from applying the tax rate to the tax base.

The tax base for the tax period is constituted by the total amount that the taxpayer must receive for the production and incorporation of electricity, measured in plant bars, into the electrical energy system. In the calculation of the total amount, the remunerations provided for in all economic regimes that derive from the provisions of the Electricity Sector Law and those provided for in the specific economic regime must be considered, in the case of production activities and incorporation into the electricity system. electrical energy in insular and extrapeninsular territories. The tax base will be determined for each facility in which production activities and incorporation into the electrical energy system are carried out.

Binding Consultation DGT V1641-13

The tax rate is 7 percent.

You must use form 583 to self-assess the tax and to make installment payments. In the case of cessation of the exercise of activity before October 31, to self-assess the tax you must use form 588. Both self-assessment models are available on the Tax Agency website.

The presentation can be made as a declarant, by a third party acting on your behalf and who is in possession of an electronic signature certificate or through social collaboration.

As a general rule, you must make four installment payments and submit the annual self-assessment:

• The first installment payment must be made between the 1st and 20th of May. Its amount results from applying the tax rate to the value of electrical energy production corresponding to the first three months of the calendar year.
• The second installment payment must be made between the 1st and 20th of September. Its amount results from applying the tax rate to the value of electrical energy production corresponding to the first six months of the calendar year, deducting the amount of the installment payment previously made.
• The third installment payment must be made between the 1st and 20th of November. Its amount results from applying the tax rate to the value of electrical energy production corresponding to the first nine months of the calendar year, deducting the amount of the installment payments previously made.
• The fourth installment payment must be made between the 1st and 20th of February of the following year. Its amount results from applying the tax rate to the value of electrical energy production corresponding to the calendar year, deducting the amount of the installment payments previously made.
• The annual self-assessment must be completed between the 1st and 30th of the month of November of the following year. Its amount results from applying the tax rate to the value of electrical energy production corresponding to the calendar year, deducting the amount of the installment payments previously made.

If the value of the electricity production, including all installations, had not exceeded 500,000 euros in the previous calendar year, you must make a single installment payment and submit the annual self-assessment:

• The single installment payment must be made between the 1st and 20th of November. Its amount results from applying the tax rate to the value of electrical energy production corresponding to the first nine months of the calendar year.
• The annual self-assessment must be completed between the 1st and 30th of November of the following year. Its amount results from applying the tax rate to the value of electrical energy production corresponding to the calendar year, deducting the amount of the installment payment previously made.

For these purposes, the value of the production is the total amount that must be received for the production and incorporation of electrical energy into the electrical system for each installation and period. If the total amount is not known at the time of making the installment payments, you must provisionally set it based on the last provisional settlement carried out by the system operator and, where appropriate, by the National Markets and Competition Commission, with prior to the start of the period for making the corresponding payment.

If the activity carried out had a duration of less than one year, to determine the production value of the previous calendar year, you must raise the value of the production to one year.

If you have started the activity after January 1, you must make a payment in installments for the current tax period if the value of the production, calculated from the beginning of the tax period, exceeds 500,000 euros, including all installations. If applicable, you must make installment payments within the settlement period corresponding to the quarter in which it exceeds the aforementioned amount.

Yes. Those who pay amounts to tax taxpayers in relation to their production activity and incorporation into the electrical energy system are required to present an annual summary declaration of operations with taxpayers in which they declare the aforementioned amounts paid.

The annual informative declaration (form 591) must be submitted electronically through the Tax Agency's website during the first twenty calendar days of the month of December following the calendar year to which the data correspond.

Yes. The annual informative declaration (form 591) must be submitted electronically through the Tax Agency website during the first twenty calendar days of December 2022 for payments that compensate for the electricity incorporated into the transportation and distribution system of the electrical system during the first and second quarters of 2021.

Yes. The annual informative declaration must be submitted electronically through the Tax Agency website during the first twenty calendar days of the month of December 2023 for payments that reward the electricity incorporated into the transportation and distribution system of the electrical system during 2022. .