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V2515-17 5 October 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo reducido

10% reduced VAT rate applies to paper destruction services if classified as waste disposal

A company requested clarification on the VAT rate applicable to certified document destruction services using industrial shredders. The DGT ruled that if the operation constitutes the disposal of waste (such as paper), the reduced rate of 10% applies.

The question raised

Applicable tax rate for the operation.

The DGT's ruling

Services involving the collection, transport, recovery, or disposal of waste are taxed at the 10% tax rate. For this rate to apply, the operation must consist of the management of substances or objects which, according to Law 22/2011, are considered waste, such as paper. The general rate of 21% shall apply unless these requirements for waste disposal or recovery are met.

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