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V1306-18 18 May 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · no sujeción

Water management and exploitation operations by irrigation communities are not subject to VAT

An irrigation community has requested clarification on whether mixing water with fertiliser for irrigation purposes is subject to VAT. The Directorate General for Taxes (DGT) has ruled that water management and exploitation operations are not subject to the tax, even when water is mixed with fertiliser.

The question raised

Liability for Value Added Tax.

The DGT's ruling

The operations of irrigation communities for the management and exploitation of water are not subject to VAT pursuant to Article 7.11 of Law 37/1992. This includes the supply of water to its members, even if it is mixed with fertilizer. However, the distribution and commercialization of water acquired from third parties or desalinated water carried out for consideration shall be subject to the tax.

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