Hydrocarbon Tax

Taxable base and tax rates

The taxable base of the Hydrocarbon Tax will consist of the volume of products subject to the tax, expressed in thousands of liters at a temperature of 15 C .

For those products whose tax rate is established by reference to units of weight or energy, the base will be constituted by the weight of the product expressed in metric tons, or by its energy power expressed in gigajoules.

Tax rates

Within the European Union, Member States may establish the tax rates, within the framework provided for in Community regulations.

The Excise Tax Law establishes the applicable tax rates in its article 50.

The tax rates established in article 50 of the Excise Tax Law are set by product headings and in two tariffs:

• Tariff 1 includes the headings of products whose most common use is fuel or motor fuel, and also the most commonly used hydrocarbons.

• Other product headings are included in tariff 2.

In general, the tax rate is set as a fixed amount per thousand litres of product, per tonne of weight or per gigajoule.

Spanish legislation has included the possibility provided for in the Community Directive of establishing reduced tax rates. Thus, tariff 1 of the Tax provides for reduced tax rates for the following products and uses:

• Heating oil and oil used in certain applications (such as agriculture).

• Natural gas intended for uses other than fuel or motor fuel and for professional uses.

• Kerosene for uses other than fuel.

The application of the reduced rates is subject to the requirements established by regulation in each case, regarding the addition of markers or tracers, effective use of the products and use of specific means of payment.