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A local council has requested clarification on the VAT rate applicable to fees charged by a Consortium to municipalities for high-pressure water supply and sanitation. The Directorate General for Taxes (DGT) has ruled that these operations are subject to VAT and must apply the reduced rate of 10%.
This ruling clarifies the tax treatment for water management services provided by consortia to local authorities, ensuring the correct application of the reduced VAT rate for essential water services.
The tax team reviews your specific situation.
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