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V1912-14 16 July 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo reducido

Reduced 10% VAT rate applies to waste and wastewater collection and treatment

A taxpayer queried the VAT rate applicable to sewer cleaning, waste transport, and septic tank cleaning services. The DGT ruled that the collection, transport, or treatment of waste and wastewater is subject to the 10% reduced rate, whereas cleaning services that do not involve waste collection are subject to the standard 21% rate.

The question raised

Applicable tax rate.

The DGT's ruling

The 10% rate applies to the collection, transport, disposal, or recovery of waste (hazardous or otherwise), including septic tank sludge and used domestic oils, as well as the collection and treatment of wastewater and the cleaning of public sewers. The 21% rate applies to the cleaning of septic tanks, wells, treatment plants, or non-public sewers when it does not involve the collection of waste or sludge. Ancillary services shall follow the regime of the principal operation.

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