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V1689-24 ·10 July 2024 ·consulta-vinculante Medium impact
Tax

The design and execution of an improvement project on third-party infrastructure without consideration is subject to VAT

A commercial entity inquired whether the receipt of European funds and subsidies for a water digitalization project was subject to VAT, and whether the design and execution of said project on existing municipal infrastructure without charge constituted an exempt operation. The DGT ruled that the funds do not constitute consideration and that the free design and execution of services on third-party assets constitutes self-consumption of services subject to VAT.

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2024-07-10PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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