Substitute taxpayer in the tax on waste landfilling and incineration

The Directorate General of Taxes (DGT) has issued a relevant ruling regarding the determination of the taxpayer in the Tax on the landfilling, incineration, and co-incineration of waste. The inquiry focused on identifying who must assume the status of manager for the purposes of this tax when the operation of the facility does not coincide with its ownership.

What the DGT has resolved

The resolution establishes that the taxpayer, in their capacity as a substitute for the taxpayer, is the natural or legal person acting as the manager of landfills or incineration or co-incineration facilities, provided they are different from the person performing the taxable event. According to Law 7/2022, the treatment manager operating a facility must hold their own specific authorization.

Therefore, the DGT concludes that the status of substitute taxpayer corresponds to the company that holds the treatment manager authorization and operates the facility, regardless of who holds the ownership of the same.

What it means for you

This criterion has a direct impact on the cost structure and tax obligations of companies in the waste management sector. If your organization operates a treatment, landfill, or incineration facility through its own authorization, it will assume responsibility for the tax as a substitute taxpayer. This distinction is fundamental for the correct settlement of the tax, as the obligation does not derive from the ownership of the asset, but from the capacity to operate and the ownership of the administrative authorization necessary to operate.

What should be done

It is necessary to verify the legal and administrative status of the waste treatment facilities under your control. It must be checked whether the company acts as the owner or as the manager with its own authorization, as this determines the liability towards the Tax Administration. Given the specificity of the applicable regulations, it is essential to analyze the contractual and administrative relationship between owners and operators to ensure compliance with the obligations derived from Law 7/2022 and Law 58/2003.