Skip to content
Back to index
V0485-17 23 February 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · junta de compensación

Compensation boards must issue VAT invoices for water network maintenance costs

A landowner of a plot within an urbanisation managed by a compensation board has enquired whether the board must issue an invoice for water network maintenance costs. The Directorate-General for Taxes (DGT) has ruled that, as the landowner is not a businessperson or professional, the board must charge VAT and issue the corresponding invoice.

The question raised

Obligation of the compensation board to issue an invoice for the amounts paid by the applicant.

The DGT's ruling

If the owner does not act as an entrepreneur or professional, the reverse charge mechanism does not apply. In this case, the compensation board must charge the VAT amount at the general rate of 21% and is obliged to issue and deliver an invoice for the services rendered.

Book your free first meeting