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V0509-17 27 February 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · refacturación

Water supply refactoring by a council to a concessionary company is subject to 10% VAT

A local council asked whether the refactoring of water expenses paid to a concessionary company is subject to VAT. The DGT responded that this constitutes a service provision subject to the reduced VAT rate of 10%.

The question raised

Question posed: Liability for Value Added Tax on the amount of the water supply rebilled by the City Council to the concession company.

The DGT's ruling

The rebilling of water supply expenses that the City Council must carry out to the concessionaire entity is a provision of services subject to and not exempt from VAT. The tax must be charged at the reduced rate of 10%. If the City Council carries out both taxable and non-taxable operations, it may deduct the supply levies if they are used exclusively for taxable operations.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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