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A municipality has enquired whether it can deduct VAT on works carried out to renew the water supply network. The DGT has ruled that water distribution constitutes a business activity subject to VAT, thereby allowing for the deduction of input VAT.
Cuestión planteada Deducibilidad de los gastos de renovación de la red de suministro de agua.
La distribución de agua es una actividad empresarial sujeta a IVA, incluyendo todas las fases del ciclo integral del agua. Por tanto, el Ayuntamiento puede deducirse las cuotas soportadas por la adquisición de bienes y servicios, como las obras de renovación de la red, siempre que se cumplan los requisitos de la Ley del IVA. Si realiza operaciones sujetas y no sujetas, deberá aplicar un criterio de imputación razonable y homogéneo.
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