The supply of water and types of energy defined by the Executive Regulations of this Decree-Law through a distribution system, shall be deemed to be made in the place of residence of the taxable trader if the distribution is carried out by a taxable person whose place of residence in the State to a taxable trader whose place of residence in an applying state.

The supply of water and types of energy defined by the Executive Regulations of this Decree-Law through a distribution system, shall be deemed to be made at the place of actual consumption if the distribution is carried out by a taxable person to a non-taxable person.