Skip to content
Back to index
V4110-15 21 December 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeción al impuesto

Urban infrastructure works carried out by a City Council may be subject to VAT

A City Council inquires about the VAT liability of infrastructure works for rainwater collection and its right to deduction. The DGT indicates that these works are subject to the tax if they are not carried out without consideration or through taxes, and establishes the deduction rules for dual entities.

The question raised

Question raised: Right to deduction.

The DGT's ruling

The activities of public entities that arrange means to develop a business activity are subject to VAT. The execution of works by a City Council shall be subject to the tax provided that it is not carried out without consideration or through consideration of a tax nature. If the entity carries out both taxable and non-taxable operations, it may deduct the tax amounts on goods and services intended simultaneously for both through a reasonable and homogeneous criterion, but it may not deduct the tax amounts on acquisitions intended exclusively for non-taxable operations pursuant to Article 7.8.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

Email
Contact