Limits on hydrocarbons Tax Refunds clarified by Supreme Court

How Regional Rates Impact Hydrocarbons Tax Refunds

The Court of Justice of the European Union in its judgment of May 30, 2024, case C-743/22 declared the invalidity of the Hydrocarbons Tax in its autonomous community section, as different tax rates were established for the same product and use, depending on the region of Spain where this tax was applied.

However, there were certain important issues on which the CJEU did not rule, such as the legitimacy to request the refund of the tax considered contrary to the legal system. Well, this issue has been addressed by the Supreme Court, which has been clarifying in different rulings the powers of taxpayers to request such refund. 

In its ruling of September 20, 2024 (rec. 1560/2021), the SC incorporates the CJEU doctrine into our legal system and establishes that taxpayers who have been charged this tax are entitled to a refund of the amounts that they have unduly borne in this respect.

Later, the same court in its ruling of September 25, 2024 (rec. 1902/2021) establishes that the final consumer is not entitled to request a refund of the amounts paid on purchases taxed at the regional rate of the Tax on Hydrocarbons. 

Finally, the Supreme Court in its judgment of September 30, 2024 (rec. 3091/2021) declares that the obligation to refund the illegal quotas of the Tax on Hydrocarbons corresponds to the Autonomous Community in which the same were paid, regardless of whether or not it was the final recipient of the same. However, it also declares the possibility of making the necessary adjustments between the Autonomous Communities.