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V0800-14 24 March 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

Water treatment and management services for purification plants subject to 21% VAT

A local council has requested clarification on the VAT rate applicable to water treatment and management services for a purification plant contracted with a company. The Directorate-General for Taxes (DGT) has ruled that the standard rate applies.

The question raised

Applicable tax rate for services provided to the City Council.

The DGT's ruling

Water treatment and management services for a drinking water plant are taxed at the 21 percent tax rate. Article 91 of Law 37/1992 does not include these types of operations among those subject to reduced rates.

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