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V5270-16 13 December 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · gestión de residuos

Waste management services provided by a public commercial company are subject to VAT if provided to third parties

A query was raised regarding whether waste collection services carried out by a public commercial company are subject to VAT. The DGT determines that if the company provides the service to third parties other than the Public Administration it depends on, the transaction is subject to the tax.

The question raised

The one related to the facts.

The DGT's ruling

Public Administrations are not subject to VAT on waste management services when provided without consideration or through fees. However, public commercial companies, although part of the public sector, must apply VAT when their services are provided to third parties external to the Administration to which they belong. If the Administration acts through a concession where the successful bidder provides the service at its own account and risk, the reduced rate of 10% shall apply.

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