- The Kennisgroep omzetbelasting addressed a question about VAT implications of converting natural gas to electricity.
- X and Y enter an agreement to convert natural gas to electricity, with X providing the gas to Y.
- Y does not pay X for the gas but receives a fixed fee and a fee per MWh of electricity generated.
- The total fee paid by X to Y is significantly lower than the usual market rate for the electricity produced.
- X retains ownership of the gas until it is converted and owns the electricity immediately after generation.
- The conversion process is the responsibility and risk of X.
- In Y’s power plant, gas is burned to convert water to steam, which drives a turbine to generate electricity.
- Both the gas and steam are consumed in the electricity generation process.
- The transfer of gas from X to Y and electricity from Y to X are not considered deliveries under article 3, first paragraph, part a, of the Wet OB 1968.
Source: taxence.nl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
