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V2469-14 23 September 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · no sujeción

Water distribution and fertilizer delivery by irrigation communities subject to VAT

An irrigation community has requested clarification on whether water supply and the delivery of fertiliser to its members are subject to VAT. The Directorate-General for Taxes (DGT) has ruled that water distribution for consideration is subject to the tax, and that the delivery of fertiliser does not qualify for non-subjectivity as it does not constitute water management.

The question raised

Liability for Tax regarding the aforementioned operations and the obligation to invoice.

The DGT's ruling

Water distribution and marketing operations carried out by irrigation communities for consideration are subject to VAT. Likewise, the delivery of fertilizer by the community to its members is subject to the tax as it is not a water management or utilization operation. The community must issue an invoice detailing the tax amount for each operation separately.

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