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A company has requested clarification on whether monthly payments for a temporary pipeline right of way through an adjacent premises are subject to VAT and whether Income Tax (IRPF) withholding must be applied. The Directorate-General for Tax (DGT) ruled that the transaction is subject to VAT as a provision of services, but there is no obligation to withhold Income Tax as it does not constitute a lease of urban property.
The tax team reviews your specific situation.
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