Abbreviated form of legal source
DL 504/95
Description of the process
Once the construction of the system with a capacity above 20 kW is complete, the operator will proceed to the ‘Corporate legal-fiscal’ process step. Tax obligations differ depending on whether the electricity is generated for self-consumption (even to a small extent) or sold entirely to the grid (§52 (2) DL 504/95).
For plants generating electricity for self-consumption, this includes obtaining an operating licence from the locally competent customs authority for excise duty on electricity. After the examination the registration form, the issues an operating licence valid for an unlimited time, and subject to the payment of an annual fee (§63 (3) DL 504/95).:
• € 23.24 for self-consumption and generation facilities that resell en bloc the energy generated or purchased to other producers;
• € 77.47 for generating facilities, substations etc used for commercial purposes. In the event that all electricity produced is fed into the grid (sold and not used for own needs), the operator of the generating facility must only notify the same local office at the time of starting production activity (§53-bis DL 504/95).
For plants that feed all energy into the grid, the project only needs to be reported to the competent authority.
For systems with a power of ≤ 20 kW (mostly PV) owned by private individuals (individuals and condominiums) or by non-commercial entities (i.e., entities other than companies, not having the exclusive or main purpose the exercise of commercial activities) used for energy production for domestic use, revenues from excess energy must be declared in the tax return, under the item "income other than commercial activities not habitually exercised", and therefore contribute to the tax base for direct tax purposes. These revenues are not, however, subject to VAT. In the case of condominiums, income from excess energy constitute income to be attributed directly to the individual condominiums, and for condominiums natural persons who are not entrepreneurs (or non-commercial entities) must be entered in "other income".
Competent authority
CMA and regional authority