On the feasibility of the Spanish Tax on the Value of Electricity Production in respect of the European Union Law

In relation to Judgement of the European Union Court of 3 March 2021, Oliva Park, Case C-220/19

Abstract

In virtue of Judgement of the European Union Court of 3 March 2021, Oliva Park (case C-220/19), the Spanish Tax on the Value of Electricity Production was declared to be in accordance with Community Law. This tax was intended to adapt the Spanish tax system to a more efficient and environmentally friendly use of electricity and its legality, both internally and in light of the European Union Law, was questioned from its very creation by Spanish Law 15/2012, of 27 December. The purpose of the present piece of work is to analyse the main grounds for rejection presented by the European Court of the preliminary matters put forward, with a special focus on the problems involved in classifying such a tax as a ‘direct’ one, as regards its degree of compliance with the European system.