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V0384-18 14 February 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo reducido

Reduced 10% VAT rate applies to construction and demolition waste management services

A local council requested clarification on the VAT rate applicable to construction and demolition waste treatment services contracted following construction works. The Directorate-General for Taxes (DGT) ruled that these services are subject to the 10% reduced rate if they involve the collection, transport, recovery, or disposal of substances classified as waste.

The question raised

The following questions are raised:

The DGT's ruling

The services of collection, transport, recovery or disposal of substances or objects considered waste under Law 22/2011 are taxed at the reduced rate of 10%. If a contractor acts in their own name when contracting these services with a provider to subsequently invoice the City Council, it is understood that they have provided and received the services themselves, and the reduced rate also applies.

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