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A local council has requested clarification on whether the fee payable to a concessionaire for the management of sports facilities is subject to VAT. The Directorate General of Taxes (DGT) has ruled that, as it concerns an administrative concession for the operation of public services, the transaction is not subject to the tax.
This ruling clarifies the tax treatment for local authorities managing public services through concessions, confirming that the fees paid to concessionaires do not incur VAT.
The tax team reviews your specific situation.
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