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V1249-17 23 May 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · base imponible

Re-invoicing of water supplies is subject to 21% VAT if the lease is not exempt

A company sought clarification on whether the water consumption amounts it re-invoices to its tenant are subject to VAT. The DGT ruled that such re-invoicing constitutes a provision of services subject to the standard VAT rate.

The question raised

1.- VAT liability on the amount of water consumption rebilled by the consulting entity to the lessee.

The DGT's ruling

The rebilling of water supply expenses constitutes a provision of services subject to VAT. The taxable base must include the net amount of the expense (excluding the input VAT), although if a higher amount is charged by agreement between the parties, that difference shall also form part of the taxable base. The general rate of 21% must be applied provided that the main leasing transaction is not exempt.

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