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A County Council has requested a ruling on whether waste collection services provided on behalf of municipalities are subject to VAT. The DGT has determined that such services are not subject to the tax, as they constitute a public function performed by a local authority.
Question raised: Taxability of the aforementioned operation.
Services provided by delegation by a County Council to the Municipalities integrated within the county relating to garbage collection are not subject to VAT. Likewise, the granting of the administrative concession for the material provision of the service is not subject to the tax, unless it falls within the exceptions of the law. Notwithstanding, the services that the concessionaire provides to the County Council shall be subject to VAT at the 10% rate.
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