Skip to content
Back to index
V1751-23 15 June 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · no sujeción

Services of waste collection by a comarcal council to its municipalities are exempt from VAT

A comarcal council asks whether waste collection, cleaning and drop-off points services provided to its municipalities are subject to VAT. The DGT responds that they are not, as these services are provided by a public body to administrations it fully oversees.

The question raised

Whether the waste-related services that the applicant is going to provide to the various municipalities would be subject to Value Added Tax. If applicable, the tax rate applicable to them. Deductibility of the Value Added Tax amounts incurred by the applicant in the acquisition of goods and services that directly and exclusively affect the provision of these services. Obligation to include the invoices issued for said services in the SII.

The DGT's ruling

Waste collection services provided by the council to municipalities are not subject to VAT pursuant to Article 7.8 of Law 37/1992. In the event of jointly performing taxable and non-taxable operations, a reasonable and homogeneous imputation criterion may be applied for the deduction of tax amounts. Notwithstanding, tax amounts for goods or services intended exclusively for non-taxable operations shall not be deductible. There is no obligation to issue an invoice for these non-taxable operations, unless they have an impact on the tax settlement mechanism.

Book your free first meeting