22 09 23 Tax Alert Analysis of Royal Decree-Law 17 2022

On 21 September 2022, Royal Decree-Law 17/2022 of 20 September was published in the Official State Gazette, adopting urgent measures in the field of energy, in the application of the remuneration system to cogeneration facilities and temporarily reducing the VAT rate applicable to deliveries, imports and intra-Community acquisitions of certain fuels (hereinafter, "RD-Law 17/2022"), which came into force on 22 September.

RD-Law 17/2022 approved a series of energy measures, some of which were long awaited in terms of project permitting. Among others, a measure has been adopted to enable cogeneration facilities to recover their operating costs - due to the price situation in the energy markets - through a new type of voluntary waiver of the specific remuneration scheme so that they can apply for inclusion in the adjustment mechanism; measures have also been introduced to promote the processing, commissioning, and evacuation of renewable energy. Another remarkable energy measure is the creation of an active demand response service. On the other hand, in the fiscal area, a reduction from 21% to 5% in the VAT tax rate on deliveries, imports and intra-Community acquisitions of certain fuels is established on an exceptional and transitory basis until 31 December 2022.

In this Alert we will summarize the main developments that have been approved.