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Indirect Management: 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 11 rulings · 2017–2026

Current position

The nature of the consideration depends on who assumes the risk and the direct relationship with the user. If a commercial company manages the activity, assumes the risk, and relates to the users, the consideration is a non-tax public patrimonial provision subject to IVA (Value Added Tax). If the company is a mere instrument and the City Council maintains the management and relationship with the user, the consideration is a fee.

The DGT's position remains constant in the distinction between a fee and a patrimonial provision according to the management model. Rulings have increasingly specified the elements of indirect management, such as the assumption of risk and the direct relationship with the user, to determine the legal nature. No change in criterion is observed, but rather greater specificity in the elements that define indirect management.

Turning points

  1. V0418-26

    Establishes that the assumption of risk and the direct relationship with the user by the commercial company are the determining factors to qualify the consideration as a non-tax public patrimonial provision.

Analysis based on 11 of 11 rulings with a stated position. Updated 28 September 2026.

Rulings on this topic

11
V2414-22 22 Nov 2022

Considerations for water, sewerage, and waste services are non-tax patrimonial benefits and are subject to VAT if provided through differentiated personification or indirect management

SG de Impuestos sobre el Consumo
prestación patrimonial de carácter público no tributariotasagestión directa con personificación diferenciadagestión indirectasujeción al impuesto LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5
Affects CompanyExpat · Non-residentIndividual
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