Tax liability of landfill and incineration managers

The Directorate General of Taxes (DGT) has issued a relevant ruling regarding the determination of taxable persons for the Tax on the deposit of waste in landfills, incineration, and co-incineration of waste. The issue focuses on identifying whether the managers of these facilities must act as substitutes for the taxpayer when they are not the ones directly performing the taxable event.

What the DGT has resolved

After analyzing current regulations, the DGT has clarified the application of Article 91 of Law 7/2022. The body establishes that managers of landfills, incineration, or co-incineration facilities hold the status of taxable persons as substitutes for the taxpayer, provided they are different from those who perform the taxable event.

However, the ruling introduces a fundamental distinction: if the manager themselves performs the waste deposit, they do not act as a substitute, but rather hold the status of direct taxpayer. This distinction is key to determining the nature of the tax obligation and the responsibility in complying with the regulations.

What it means for you

This pronouncement has a direct impact on companies operating in the waste treatment sector. Correctly identifying the tax position is necessary to avoid errors in the settlement of the tax. For managers, it is vital to distinguish whether their activity falls under the figure of the substitute or if, due to the nature of the operation, they must assume the position of taxpayer.

An erroneous classification could lead to incorrect management of obligations before the Tax Administration, affecting the determination of who must make the payment and under which legal concept.

What should be done

When managing waste treatment facilities, it is necessary to:

• Analyze the nature of the deposit or incineration operation to determine if the manager performs the taxable event.
• Verify the application of Article 91 of Law 7/2022 in each contract or service provided.
• Assess the specific situation of your activity to ensure that the status of the taxable person is correct.

Since tax liability depends on the technical execution of the activity, each scenario must be analyzed individually.