Promociones Oliva Park SL produces electricity. With regard to its returns for the tax on the value of electricity production (IVPEE), it requests that these be adjusted and that an amount of € 12,000 be refunded. The tax base of the IVPEE is formed by the total amount of income generated by the generation of electricity and its delivery to the electricity grid. Olivia believes that the IVPEE is in violation of EU law. According to Olivia, the IVPEE constitutes an indirect tax levied on the generation of electricity from renewable sources, which puts this form of electricity generation at a disadvantage compared to its generation from non-renewable sources. Olivia also points out that no distinction is made according to the intensity and environmental pollution.
The Court of Justice of the EU has ruled that the Spanish tax on the value of electricity production is not contrary to EU law. The fact that the actual amount of electricity generated and fed into the grid is not taken into account is irrelevant. It is also irrelevant that the tax is levied at a single rate and that this also applies when the electricity is generated from renewable sources. The fact that the tax is not intended to protect the environment, but to increase budget revenues, is also irrelevant.
Source
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