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V1750-23 ·15 June 2023 ·consulta-vinculante Medium impact
Tax

VAT applicability on water distribution and treatment of economic imbalance compensations

A mixed-capital company has requested a ruling on whether payments received from local councils to maintain the economic balance of water management, and for municipal consumption exceeding 10%, are subject to VAT. The DGT has determined that excess consumption is subject to the tax, whereas imbalance compensations are not, provided they do not constitute consideration or subsidies linked to the price.

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2023-06-15PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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