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A local council has requested clarification on whether its water supply and sewerage services qualify as industrial activities to apply a reduction to the taxable base of the Special Tax on Electricity. The Directorate General for Taxes (DGT) has ruled that water supply does qualify, but sewerage and water treatment do not.
This ruling clarifies the scope of industrial activities for tax reduction purposes, specifically distinguishing between water supply and wastewater management services.
The tax team reviews your specific situation.
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