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A member of an irrigation community inquired whether canal maintenance services performed by employees of an Irrigation Community are subject to VAT. The Directorate-General for Taxes (DGT) ruled that they are not subject to VAT, as they are services provided under a regime of labour dependency and because the operations of Irrigation Communities are not subject to VAT.
This ruling clarifies the VAT status of maintenance activities carried out by staff within irrigation communities, confirming that such services fall outside the scope of VAT due to the employment relationship.
The tax team reviews your specific situation.
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