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The query examines the VAT rate applicable to residential care services managed by a commercial entity with prices set by a local council. The DGT rules that the rate depends on whether there is administrative control over prices and whether the entity has a social character.
This ruling clarifies the tax treatment for residential care providers, distinguishing between those subject to the super-reduced rate and those eligible for exemption based on price regulation and social purpose.
The tax team reviews your specific situation.
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