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V3983-16 ·21 September 2016 ·consulta-vinculante Medium impact
Tax

Potable water supply is subject to VAT even if the consideration is of a tax nature

A query was raised regarding whether domestic water supply services managed by a local council are subject to VAT. The DGT ruled that water distribution is a taxable business activity, even if charged via a municipal rate.

In 6 key points

How it affects those involved

This ruling clarifies that the legal nature of the charge (as a municipal tax/rate) does not exempt the underlying service from VAT if it constitutes a business activity.

Lifecycle

2016-09-21PublishedPublished 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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