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V0657-20 2 April 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · concesión administrativa

Administrative concession for the use of municipal vehicles for waste collection may be exempt from VAT

A local council consulted whether the transfer of two public domain vehicles in exchange for an annual fee for waste collection was subject to VAT. The DGT ruled that if the operation is classified as a public service concession, it is not subject to the tax.

The question raised

Subjectivity of the transfer of said vehicles to Value Added Tax.

The DGT's ruling

If the contract is classified as a public service concession under the administrative concession modality, the concession shall not be subject to VAT, and therefore the City Council must not charge tax on the annual fee. However, this non-applicability does not extend to the services provided by the concessionaire to the service users. If it were not classified as a concession, the transfer of the vehicles in exchange for a price would be a provision of services subject to the general rate of 21%.

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