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A company requested clarification on the VAT rate applicable to wastewater treatment services provided under a public works concession. The Directorate-General for Taxes (DGT) ruled that these services are subject to the reduced rate of 10%.
Question raised: Applicable tax rate for wastewater purification services.
Wastewater collection or treatment services are taxed at the reduced rate of 10% pursuant to Article 91.One.2.5º of Law 37/1992. This rate applies to all types of wastewater (urban, domestic, or industrial) without distinction. The treatment of drinking water is not included in this reduced rate and shall be taxed at the general rate.
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