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Water Use: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 8 rulings · 2015–2020

Current position

The operations of irrigation communities for the management and use of water are not subject to IVA (Value Added Tax) according to article 7.11 of Law 37/1992. This includes the supply of water to its members and the rebilling of expenses derived from such activities. However, the distribution and commercialization of water acquired from third parties or desalinated for a fee is subject to the tax.

The DGT's position remains constant regarding the exemption by non-subjectivity of water management and use activities. Throughout the rulings, it has been specified that the supply of water to members and the rebilling of associated expenses maintain this condition of non-subjectivity. A clear distinction is maintained between these activities and the commercialization of water acquired from third parties, which is taxable.

Turning points

  1. V0114-17

    Establishes the distinction between water management and the distribution-commercialization of water for a fee, which is subject to IVA.

  2. V1306-18

    Clarifies that the supply of water to members is not subject to IVA even if it is mixed with fertilizer.

Analysis based on 8 of 8 rulings with a stated position. Updated 2 October 2026.

Rulings on this topic

8
V0114-17 20 Jan 2017

Recharging of costs for water management and use is not subject to VAT

SG de Impuestos sobre el Consumo
no sujecióncomunidades de regantesordenación de aguasaprovechamiento de aguasrefacturación de gastos LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5.Uno a)
Affects CompanyExpat · Non-residentIndividual

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