Back to index
V2942-23 8 November 2023 · SG de Impuestos Especiales y de Tributos sobre el Comercio Exterior y sobre el Medio Ambiente Criterion in force
IVA · base imponible

Landfill tax must be included in the VAT taxable amount

A taxpayer queried whether the tax on waste disposal, incineration, and co-incineration should be included in the VAT taxable amount for their services. The Directorate-General for Taxes (DGT) ruled that it must, due to the direct link between the tax and the service provided.

The question raised

Whether the amount of the Tax on the landfilling, incineration, and co-incineration of waste should be included in the taxable base of Value Added Tax for the services provided.

The DGT's ruling

The tax on the landfilling, incineration, and co-incineration of waste forms part of the VAT taxable base. This is due to the existence of a direct link between the taxable event of said tax and the waste disposal services provided. The inclusion of taxes in the taxable base requires that they have such a close relationship with the provision that they must be integrated into the consideration.

Book your free first meeting