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A chauffeur-driven vehicle hire cooperative sought clarification on the applicable VAT rate when clients are companies based in the European Union. The DGT has determined that this activity constitutes passenger transport and must be taxed in Spain for the portion of the journey carried out within national territory.
This ruling clarifies the VAT treatment for chauffeur services involving EU-based corporate clients, confirming that the 10% reduced rate applies to the specific segments of travel conducted within Spain.
The tax team reviews your specific situation.
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