Millions of euro
at Dec. 31, 2019
at Dec. 31, 2018
Receivables from institutional market operators
Receivables from institutional market operators are essentially unchanged from the previous year.
At December 31, 2019, other receivables mainly regarded tax receivables in the amount of €1,587 million (€231 million at December 31, 2018), security deposits in the amount of €418 million (€307 million at the end of 2018), and non-monetary grants to be received in respect of green certificates totaling €37 million (€50 million at December 31, 2018).
The change for the year mainly reflects the tax receivables recognized by Enel Distribuição São Paulo and Enel Distribuição Ceará related to the PIS/COFINS dispute in Brazil.
The PIS (Program of Social Integration) and COFINS (Contribution for the Financing of Social Security) are federal contributions that pay companies in Brazil with the goal of funding programs for employees, public health, social services, and social security by applying tax rates on the gross revenue of each company. The ICMS (Tax on Commerce and Services) is similar to VAT and is applied on the sale of goods, telecommunications and transport.
Electricity distribution companies in Brazil have filed separate law suits against the Brazilian government’s application of PIS/COFINS for the portion calculated on the ICMS tax. These companies include Enel Distribuição São Paulo, Enel Distribuição Ceará, Enel Distribuição Goiás, and Enel Distribuição Rio.
The Brazilian court has upheld the complaint filed by the companies, according to which the additional ICMS tax must not be included in the tax base for PIS and COFINS. The federal government has filed an appeal of this ruling.
In 2019, Enel Distribuição São Paulo and Enel Distribuição Ceará were notified of the ruling that acknowledges the full deductibility of ICMS for the purposes of calculating PIS and COFINS for the periods between December 2013 and December 2014 for Enel Distribuição São Paulo and from May 2001 onward for Enel Distribuição Ceará.