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A City Council inquires about the VAT regime for services such as water supply, fairs, transport, waste, municipal television, and the leasing of land. The DGT clarifies which activities are always subject to VAT, which are not subject to VAT, and which tax rates apply according to the nature of the service.
Question raised: Those related to the facts.
Water supply and sewerage, the operation of commercial fairs, and passenger transport are subject to VAT at a reduced rate of 10%. Waste collection is subject to 10% if it involves waste, or 21% if it does not. Commercial activities of public television are subject to 21%. The leasing of land for fairs may be exempt or subject to 21%, and administrative concessions of public domain assets are not subject to the tax.
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