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V1588-18 8 June 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

Unblocking and drain cleaning subject to 21% VAT if waste collection, transport and treatment are not included

A company specialising in unblocking and cleaning pipes and drains has requested clarification on the applicable VAT rate. The DGT has ruled that the reduced rate of 10% only applies if the operation includes the management of the waste generated; otherwise, the standard rate of 21% must be applied.

The question raised

Question posed: Applicable tax rate for said operations.

The DGT's ruling

The 10% rate applies to the collection, transport, disposal, or recovery of waste and to the treatment of wastewater. The cleaning of septic tanks or wells that does not involve the collection of wastewater or sludge is taxed at 21%. Therefore, the unblocking and cleaning of drains in dwellings or communities is taxed at 21% when it does not entail the collection, transport, and treatment of the generated waste.

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