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Tax Nature: 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

Stable position High confidence 9 rulings · 2014–2021

Current position

The tax nature of the consideration determines the liability for IVA (Value Added Tax). If the consideration has the nature of a fee or tax, the operation is not subject to the tax. If the consideration is a public price or does not have a tax nature, the provision of services is subject to IVA, applying the general rate of 21 percent in the case of the transfer of real estate.

The DGT maintains a constant position based on the distinction between taxes and public prices to determine liability for IVA. Throughout the rulings, it has been reaffirmed that the absence of a tax nature in the consideration makes the activity subject to the tax, regardless of whether the provider is a Public Administration.

Turning points

  1. V0864-15

    Establishes that if the Administration contracts a commercial company through a concession, the service will be subject to IVA even if the consideration is a fee.

  2. V3983-16

    Determines that water distribution is always subject to IVA, whether provided by the Administration directly or through a concessionaire.

Analysis based on 9 of 9 rulings with a stated position. Updated 30 September 2026.

Rulings on this topic

9
V1978-20 17 Jun 2020

Sellers are required to issue electronic refund documents for VAT recovery

SG de Impuestos sobre el Consumo
documento electrónico de reembolsorégimen de viajerosreclamación económico-administrativaexenciónnaturaleza tributaria LIVA — Ley 37/1992 del IVA art. 88.6RIVA — RD 1624/1992, Reglamento del IVA art. 9
Affects CompanyExpat · Non-residentIndividual

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