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V4279-16 5 October 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeción

Waste collection services provided by a municipal commercial company are subject to VAT

A City Council has requested a ruling on whether waste collection services provided by its owned commercial company are subject to VAT. The DGT has determined that, as the service is provided by a commercial company in its own name, the transaction is subject to the tax.

The question raised

Subjectivity of operations to Value Added Tax.

The DGT's ruling

Public Administrations are not subject to VAT when providing services for consideration, except for the activities listed in Article 7.8 of Law 37/1992. However, if the service is provided by a commercial company, even if it is wholly publicly owned, the provision is subject to tax when the recipients are third parties other than the Public Administration. In this case, the commercial company must invoice the total amount, charging VAT at 10 percent.

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