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V0148-25 ·12 February 2025 ·consulta-vinculante Low impact
Tax

The acquisition and supply of water between municipal entities may be subject to VAT

The DGT confirms that the transaction is subject to VAT, and deductibility depends on whether the water is used in taxable or non-taxable operations.

In 6 key points

How it affects those involved

The response clarifies VAT treatment and deductibility conditions for municipal water resale transactions.

Lifecycle

2025-02-12PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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