Main developments regarding the Tax on the Value of Electricity Production pursuant to Article 41 of Royal Decree-Law 7/2026, of March 20, which approves the Comprehensive Response Plan to the Crisis in the Middle East

Article 41 of Royal Decree-Law 7/2026, of March 20, which approves the Comprehensive Response Plan to the Crisis in the Middle East, regulates two reductions in the taxable base of the Tax on the Value of Electricity Production corresponding to the year 2026 in order to compensate for the higher costs borne by companies that determine the price of electricity in the wholesale market due to the increased cost of energy products, so that they can offer more competitive prices that benefit consumers:

• A 10 percent reduction in the remuneration corresponding to electricity incorporated into the system during the first calendar quarter of 2026which means that 90 percent of said remuneration will be included in the taxable base of the tax.
• A reduction in the total remuneration corresponding to electricity incorporated into the system during the second calendar quarter of 2026which means that these payments will not be included in the taxable base of the tax.

Both reductions modify the value of electricity production that must be taken into account for the calculation of the installment payments and the annual self-assessment for the year 2026.

Taxpayers whose production value, including all their production facilities, exceeds 500,000 euros in the previous year are required to submit four installment payments and one annual self-assessment).

• Form 583. First installment payment 2026 (to be submitted between the 1st and 20th of May 2026) 

The full fee or amount to be paid will be the result of applying 7 percent to the value of electricity production in the first quarter.

The value of electricity production in the first quarter is 90 percent of the amount of remuneration corresponding to the electricity incorporated in the first quarter that have been notified by May 1, 2026, the start date of the first installment payment.

• Form 583. Second installment payment 2026 (to be submitted between the 1st and 20th of September 2026).

The full fee or amount to be paid will be the result of applying 7 percent to the value of the electricity production of the second quarter, deducting the amount of the first installment payment.

The value of electricity production in the second quarter is 90 percent of the amount of remuneration corresponding to the electricity incorporated in the first quarter that have been notified by September 1, 2026, the start date of the second installment payment.

The payments corresponding to the electricity incorporated in the second quarter are not included in the taxable base of the tax.

• Form 583. Third installment payment 2026 (to be submitted between November 1 and 20, 2026). 

The full fee or amount to be paid will be the result of applying 7 percent to the value of the electricity production of the third quarter, deducting the amounts of the first and second installment payment.

The value of electricity production in the third quarter is 90 percent of the amount of remuneration corresponding to the electricity incorporated in the first quarter that have been notified by November 1, 2026, the start date of the third installment payment. To this must be added the amount of the remuneration corresponding to the electricity incorporated in the third quarter that have been notified by November 1, 2026, the start date of the third installment payment.

 The payments corresponding to the electricity incorporated in the second quarter are not included in the taxable base of the tax.

• Form 583. Fourth installment payment 2026 (to be submitted between February 1 and 20, 2027). 

The full fee or amount to be paid will be the result of applying 7 percent to the value of the electricity production of the fourth quarter, deducting the amounts of the first, second and third installment payment.

The value of electricity production in the fourth quarter is 90 percent of the amount of remuneration corresponding to the electricity incorporated in the first quarter that have been notified by February 1, 2027, the start date of the third installment payment. To this must be added the amount of the remuneration corresponding to the electricity incorporated in the third and fourth quarters that have been notified by February 1, 2027, the start date of the third installment payment.

The payments corresponding to the electricity incorporated in the second quarter are not included in the taxable base of the tax.

• Annual self-assessment 2026 (to be submitted between November 1 and 20, 2027).

The full amount or fee to be paid in the annual self-assessment will be the result of applying 7 percent to the value of the electricity production of the year, deducting the amounts of the first, second, third and fourth installment payment.

The value of electricity production for the annual self-assessment is 90 percent of the amount of remuneration corresponding to the electricity incorporated in the first quarter that have been notified by November 1, 2027, the start date of the annual self-assessment. To this must be added the amount of the remuneration corresponding to the electricity incorporated in the third and fourth quarters that have been notified by November 1, 2027, the start date of the annual self-assessment.

The payments corresponding to the electricity incorporated in the second quarter are not included in the taxable base of the tax.

Taxpayers whose production value, including all their production facilities, does not exceed 500,000 euros in the previous year (required to submit a single installment payment and an annual self-assessment).

•  Form 583. Single installment payment 2026 (to be submitted between November 1 and 20, 2026).

The full fee or amount to be paid will be the result of applying 7 percent to the value of electricity production in the first, second and third quarters.

The value of electricity production for the first, second, and third quarters is 90 percent of the amount of remuneration corresponding to the electricity incorporated in the first quarter that have been notified by November 1, 2026, the start date of the single installment payment. To this must be added the amount of the remuneration corresponding to the electricity incorporated in the third quarter that have been notified by November 1, 2026, the start date of the single installment payment.

The payments corresponding to the electricity incorporated in the second quarter are not included in the taxable base of the tax.

•  Annual self-assessment 2026 (to be submitted between November 1 and 20, 2027). 

The full amount or fee to be paid in the annual self-assessment will be the result of applying 7 percent to the value of the electricity production of the year, deducting the amount of the single payment.

The value of electricity production for the annual self-assessment is 90 percent of the amount of remuneration corresponding to the electricity incorporated in the first quarter that have been notified by November 1, 2027, the start date of the annual self-assessment. To this must be added the amount of the remuneration corresponding to the electricity incorporated in the third and fourth quarters that have been notified by November 1, 2027, the start date of the annual self-assessment.

The payments corresponding to the electricity incorporated in the second quarter are not included in the taxable base of the tax.