Excise duty on electricity
Content
Where does the duty apply and which operations is it imposed on?
This is a single-stage duty levied on the supply of electricity to the consumer and on the producer’s consumption of the electricity it generates.
Case where no liability arises: consumption by generators or sets of generators with a total power of not more than 100 kilowatts (kW).
Exemptions
Under the conditions laid down in the regulations, electricity is exempt from electricity excise duty when it is:
- supplied in the context of diplomatic or consular relations;
- supplied to international organisations recognised as such in Spain, and by members of such organisations, within the limits and under the conditions determined in the international conventions establishing those organisations or in the headquarters agreements;
- supplied to the armed forces of any State, other than Spain, party to the North Atlantic Treaty or by civilian personnel in their service, or in their mess rooms and canteens;
- supplied as part of an agreement signed with third countries or international organisations, provided that the agreement is permitted or authorised in relation to exemption from value added tax;
- consumed by operators of facilities producing electricity from renewable technology, cogeneration and waste, the installed capacity of which does not exceed 50 megawatts (MW);
- consumed as a result of being generated by fuel cells;
- consumed at electricity generation installations in order to carry out that activity, and electricity supplied to electricity production, transmission and distribution facilities for the purposes of carrying out those activities there;
- consumed on vessels as a result of being generated on board;
- supplied subject to compensation with an hourly power surplus, under a self-consumption arrangement with surpluses subject to compensation, in accordance with Royal Decree 244/2019 of 5 April regulating the administrative, technical and economic conditions of self-consumption of electric power;
- supplied to the armed forces of any Member State other than Spain, for use by those forces or by civilian personnel in their service, or for supplying their mess rooms or canteens, provided that those forces are engaged in a defence effort carried out for the implementation of a European Union activity under the common security and defence policy.
Rates of duty
The taxable base will be the same as that for value added tax. In periods without actual consumption, the duty is not charged.
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Reductions of 85% according to use, in certain cases.
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100% reduction on the energy directly supplied to vessels moored in port, excluding private pleasure craft.
The tax rate is 5.11269632%, as a general rule. Exceptionally, the rate is 0.5 % if the supply or consumption period was between 16 September 2021 and 31 December 2023, 2.5 % if the supply or consumption period is between 1 January 2024 and 31 March 2024, and 3.8 % if the supply or consumption period is between 1 April 2024 and 30 June 2024.
Payment
The 560 self-assessment form, with a quarterly settlement period, although this may be monthly or annual.
Tax Agency: tax assessment and payment – assessment period and deadlines for submitting form 560
Registration and records
In the territorial register of the place where the activity is carried out, or of the tax domicile. This is mandatory for taxpayers and beneficiaries of exemptions and reductions, who must provide their supplier with the Electricity Identification Code (CIE) card to prove entitlement. Beneficiaries of the 100% reduction are not required to register.
