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A local council has requested clarification on whether swapping developable land for land intended for sports facilities is subject to VAT or Stamp Duty (ITP). The Directorate-General for Taxes (DGT) has ruled that the management of municipal land assets constitutes a business activity subject to VAT, and that the transfer by the company will also be subject to VAT if the land is developable.
The tax team reviews your specific situation.
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