Waste tax: total weight deposited determines the taxable base

The determination of the taxable base for the Tax on the deposit of waste in landfills, incineration, and co-incineration of waste has raised doubts regarding the treatment of mass loss after deposit. Recently, the Directorate General of Taxes (DGT) has issued a ruling that clarifies how this tax must be calculated.

What the DGT has resolved

The query focused on whether the moisture of the waste deposited in landfills should be considered to adjust the taxable base, given that such moisture turns into leachate or evaporates during fermentation processes. The DGT has resolved that the taxable base consists of the weight of the waste deposited, incinerated, or co-incinerated in metric tons.

The body points out that current regulations do not establish exclusions or deductions for mass losses occurring after deposit. There are also no mentions of factors relating to moisture, density, or the chemical composition of the materials. Consequently, the total weight of the waste at the exact moment of deposit is the only factor that determines the taxable base.

What it means for you

This ruling has a direct impact on companies managing waste collection and treatment facilities. Entities that must settle this tax cannot apply adjustments or reductions based on the weight loss experienced by materials once they are deposited in the landfill or subjected to incineration processes.

To comply with the tax obligation, the initial gross weight must be considered, regardless of whether the moisture turns into leachate extracted via pumps or is lost through evaporation due to fermentation temperatures.

What should be done

Companies in the sector must ensure that their weighing and data recording systems accurately reflect the total weight at the time of deposit, in accordance with the provisions of Law 7/2022 and Law 58/2003. It is necessary to assess the specific situation of each facility and the measurement methods used to guarantee the correct settlement of the tax and avoid possible contingencies with the Tax Administration.