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V3062-15 13 October 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeción

Cleaning and waste collection services provided by a mixed-capital company are subject to VAT

A City Council has inquired whether waste collection and street cleaning services provided by a mixed-capital company (with 34% public capital) are exempt from VAT. The DGT ruled that the operation is subject to the tax because the company does not constitute a Public Administration.

The question raised

Subjectivity of the described service provided by the company to the City Council and the deduction regime applicable to the mixed-capital company.

The DGT's ruling

The management of cleaning and waste services by a mixed-capital company is an operation subject to VAT, as the entity does not hold the status of a Public Administration pursuant to Article 7.8 of Law 37/1992. The non-subjectivity rules regarding management mandates or full ownership do not apply, as the company is not an instrumental proprietary medium or a technical service of the Administration. Therefore, the company must apply the general deduction regime of the VAT Law.

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