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V0970-14 7 April 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · concesión administrativa

Fees for funeral parlour concessions are exempt from VAT, while services are subject to the standard rate

A joint venture (UTE) requested clarification on whether the fee paid to the City Council for managing a municipal funeral parlour is subject to VAT and which rate applies to the services provided. The Directorate General for Taxes (DGT) ruled that the concession fee is not subject to VAT, whereas funeral parlour services are subject to the standard rate of 21%.

The question raised

Liability for Value Added Tax on the fee to be paid to the City Council and the applicable tax rate for funeral parlor services.

The DGT's ruling

The administrative concession for the management of a public funeral parlor service is an operation not subject to VAT pursuant to Article 7.9 of Law 37/1992. Therefore, the periodic fee paid to the City Council does not constitute consideration for an operation subject to the tax. Funeral parlor services provided to users are taxed at the general rate of 21% as they are not included in the reduced rate of Article 91.

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