Tax on the value of electricity production

It is a direct and real environmental tax that taxes the production and incorporation activities into the electrical system of electric energy, measured in power station bars, through the facilities referred to in the Electric 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 station bars, into the electrical energy system (including the peninsular electrical system and the insular and extra-peninsular territories).

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

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

As a general rule, the tax period coincides with the calendar year and the tax is due 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 has occurred and the tax is accrued on the day on which the cessation has occurred.

On an exceptional and temporary basis, 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 tax.

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

The taxable base for the tax period is made up of the total amount that the taxpayer is to receive for the production and incorporation of electricity, measured in power station bars, into the electric power system. When calculating the total amount, the remuneration provided for in all economic regimes derived from the provisions of the Electricity Sector Law and those provided for in the specific economic regime must be considered, in the case of activities of production and incorporation of electric energy into the electrical system in the insular and extra-peninsular territories. The tax base will be determined for each facility in which the activities of production and incorporation of electric energy into the electrical 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 fractional payments. If you cease your activity before October 31, you must use Form 588 to file your tax return. Both self-assessment forms are available on the Tax Agency's website.

The presentation can be made by you 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 split 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 the production of electrical energy corresponding to the first three months of the calendar year.
• The second split payment must be made between the 1st and 20th of September. The amount is the result of applying the tax rate to the value of the production of electrical energy corresponding to the first six months of the calendar year, minus the amount of the fractional payment previously made.
• The third installment payment must be made between the 1st and 20th of November. The amount is obtained by applying the tax rate to the value of the production of electrical energy corresponding to the first nine months of the calendar year, less the amount of the fractional 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 the production of electrical energy corresponding to the calendar year, less the amount of the fractional payments previously made.
• 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 the production of electrical energy corresponding to the calendar year, less the amount of the fractional payments previously made.

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

• The single split payment must be made between the 1st and 20th of November. Its amount results from applying the tax rate to the value of the production of electrical energy 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 the production of electrical energy corresponding to the calendar year, minus the amount of the fractional payment previously made.

For these purposes, the value of production is the total amount to 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 instalment payments, you must set it provisionally based on the last provisional settlement made by the system operator and, where applicable, by the National Commission of Markets and Competition, prior to the start of the period for making the corresponding payment.

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

If you started your business after 1 January, you must make a split payment for the current tax period if the value of your production, calculated from the start of the tax period, exceeds 500,000 euros, including all installations. If applicable, you must make the split payments within the settlement period corresponding to the quarter in which the aforementioned amount is exceeded.

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

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

Yes. The annual information declaration (form 591) must be submitted electronically through the Tax Agency's website during the first twenty calendar days of December 2022 for payments that compensate for electricity incorporated into the transmission 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's website during the first twenty calendar days of December 2023 for payments that remunerate the electricity incorporated into the transmission and distribution system of the electrical system during 2022.

Yes. The annual informative declaration must be submitted electronically through the Tax Agency's website during the first twenty calendar days of December 2024 for payments that remunerate the electricity incorporated into the transmission and distribution system of the electrical system during 2023. 

The amount of the split payment is calculated by applying the tax rate of 7% on half of the amount that the taxpayer is required to receive for the production and incorporation of electrical energy into the electrical system (value of production) in the first calendar quarter of 2024.

The amount of the split payment is calculated by applying the tax rate of 7% to the amount that the taxpayer is to receive for the production and incorporation of electrical energy into the electrical system (production value) in the first six calendar months of 2024, reduced by half of the amount that the taxpayer is to receive for the production and incorporation of electrical energy into the electrical system (production value) in the first calendar quarter of 2024 and by a quarter of the amount that the taxpayer is to receive for the production and incorporation of electrical energy into the electrical system (production value) in the second calendar quarter of 2024 .

The amount of the split payment is calculated by applying the tax rate of 7% to the amount that the taxpayer is to receive for the production and incorporation of electrical energy into the electrical system (production value) in the first nine calendar months of 2024, reduced by half of the amount that the taxpayer is to receive for the production and incorporation of electrical energy into the electrical system (production value) in the first calendar quarter of 2024 and by one-fourth of the amount that the taxpayer is to receive for the production and incorporation of electrical energy into the electrical system (production value) in the second calendar quarter of 2024 .

The amount of the split payment is calculated by applying the tax rate of 7% to the amount that the taxpayer is to receive for the production and incorporation of electrical energy into the electrical system (production value) in the twelve calendar months of 2024, reduced by half of the amount that the taxpayer is to receive for the production and incorporation of electrical energy into the electrical system (production value) in the first calendar quarter of 2024 and by a quarter of the amount that the taxpayer is to receive for the production and incorporation of electrical energy into the electrical system (production value) in the second calendar quarter of 2024 .

The 2024 tax base is calculated by applying the tax rate of 7% to the amount that the taxpayer is required to receive for the production and incorporation of electrical energy into the electrical system (production value) in the 2024 tax period, reduced by half of the amount that the taxpayer is required to receive for the production and incorporation of electrical energy into the electrical system (production value) in the first calendar quarter of 2024 and by one-fourth of the amount that the taxpayer is required to receive for the production and incorporation of electrical energy into the electrical system (production value) in the second calendar quarter of 2024 .