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A company has requested clarification regarding the VAT treatment of a concession contract for street cleaning, waste collection, and green area maintenance services. The DGT has determined that while the administrative concession itself is not a taxable operation, the services provided by the company to the local council are subject to VAT.
This ruling clarifies the distinction between the administrative concession and the underlying service provision, ensuring that service providers correctly apply VAT to their contracts with public entities.
The tax team reviews your specific situation.
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