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V0147-14 23 January 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entrega de bienes

Electricity rebilling from a local authority to a concessionaire is subject to VAT

A local authority seeking to pass on the cost of electricity paid to a water concessionaire has asked whether VAT must be applied. The DGT has ruled that the transaction constitutes a supply of goods subject to tax and that an invoice must be issued meeting all legal requirements.

The question raised

Liability for Value Added Tax.

The DGT's ruling

The rebilling of electricity expenses carried out by the city council to the concessionaire constitutes a supply of goods subject to and not exempt from VAT. As it is a taxable transaction, the city council must charge the tax and issue an invoice that complies with all the requirements and data demanded by the Invoicing Regulations.

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