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A company requested clarification on whether the annual fee payable under a private contract to operate seasonal beach services (kiosks, terraces, etc.) is subject to VAT. The DGT ruled that, as it constitutes an administrative authorisation for the exploitation of services, the transaction is not subject to the tax.
This ruling clarifies that administrative fees for the use of public domain for seasonal services fall outside the scope of VAT, distinguishing them from commercial service transactions.
The tax team reviews your specific situation.
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