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V0447-17 20 February 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

Installation of water tanks and connections subject to 21% VAT

A company requested clarification on the VAT rate applicable to works involving the collection, channeling, and connection of spring water to households. The DGT has determined that these works do not qualify for a reduced rate and must be taxed at the standard rate.

The question raised

Tax rate applicable to the works for the collection and channeling of water from a spring and its subsequent connection to various households for a Users' Community.

The DGT's ruling

The reduced rate of 10% applies exclusively to the supplies, acquisitions, or imports of waters suitable for human, animal, or irrigation consumption. The regulations do not provide for a reduced rate for the execution of works involving the installation of distributors, tanks, or network connections. Therefore, such works are taxed at the general rate of 21%, even if their purpose is to facilitate the supply of potable water.

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