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V1805-24 18 July 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · administración pública

Landfill services provided to municipalities outside the region are subject to VAT

A Regional Council consulted whether landfill services provided to municipalities other than its own members are subject to VAT. The DGT ruled that services provided to member municipalities are not subject to VAT as they are services between dependent administrations; however, services provided to external municipalities are subject to VAT if the consideration is not of a tax nature.

The question raised

Whether the landfill services that the applicant is going to provide to other municipalities other than those comprising the region would be subject to Value Added Tax.

The DGT's ruling

Landfill services provided by delegation to the municipalities comprising the region are not subject to VAT under Article 7.8, letter D) of Law 37/1992. However, the provision of landfill services to municipalities other than those comprising the region shall be subject to, and not exempt from, VAT, provided that the consideration received is not of a tax nature.

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