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A query was raised regarding whether domestic water supply services managed by a local council are subject to VAT. The DGT ruled that water distribution is a taxable business activity, even if charged via a municipal rate.
Cuestión planteada Sujeción de la tasa municipal al Impuesto sobre el Valor Añadido. Tipo impositivo.
La distribución de agua es una actividad que, aunque sea realizada por Administraciones Públicas, está siempre sujeta al IVA. Por tanto, el suministro de agua debe repercutir la cuota correspondiente al tipo reducido del 10 por ciento. Este criterio se aplica tanto si el servicio lo presta directamente el Ayuntamiento como si lo hace a través de una empresa concesionaria.
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