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V0683-17 15 March 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sociedad mercantil pública

Waste management services provided by a public limited company are subject to VAT if provided to third parties

A query was raised regarding whether urban waste collection and treatment services provided by a public limited company are subject to VAT. The DGT has determined that, as it is not considered a Public Administration, the company must apply the tax when its clients are third parties other than the Administration to which it belongs.

The question raised

The one related to the facts.

The DGT's ruling

Public commercial companies are not considered Public Administrations for the purposes of the exemption under Article 7.8 of Law 37/1992. Therefore, if they provide waste management services to third parties unrelated to the Administration to which they belong, such operations are subject to VAT. If the Administration acts through a company that provides the service in its own name and on its own account and risk, the concession is not subject to the tax, but the entity must charge VAT to the end user.

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