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V0627-19 ·22 March 2019 ·consulta-vinculante Medium impact
Tax

Local authority contributions for cemetery management may be included in the VAT taxable base

A local council has requested clarification on whether contributions made to a concessionaire for the management of a municipal cemetery are subject to VAT. The Directorate General for Taxes (DGT) has ruled that these amounts constitute a subsidy linked to the price and must therefore be included in the taxable base.

In 6 key points

How it affects those involved

This ruling clarifies that public subsidies intended to offset the costs of service provision must be treated as part of the consideration for VAT purposes, preventing the reduction of the taxable base through public funding.

Lifecycle

2019-03-22PublishedPublished 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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