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V0286-21 ·18 February 2021 ·consulta-vinculante Medium impact
Tax

Administrative concessions of public services are not subject to VAT, meaning fees are tax-free

A local council enquired whether the fee a concessionaire must pay to manage a municipal gym is subject to VAT. The DGT ruled that if the contract constitutes an administrative concession of services where the entrepreneur assumes the risk, the granting of the concession is not subject to the tax.

In 6 key points

How it affects those involved

This ruling clarifies the VAT status of fees paid by concessionaires in public service contracts, specifically when the entrepreneur bears the operational risk.

Lifecycle

2021-02-18PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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