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A local authority has requested clarification on whether the leasing of warehouses and offices within a business centre, via the collection of a fee, is subject to VAT. The Directorate General for Taxes (DGT) ruled that VAT liability depends on whether the consideration is classified as a fee or another type of tax-based charge.
This ruling clarifies the VAT status of public assets managed by local authorities, distinguishing between taxable services and non-taxable tax-based charges.
The tax team reviews your specific situation.
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