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A local council has requested clarification on whether the annual fee for the concession of a bar in sports facilities is subject to VAT. The Directorate General for Taxes (DGT) has ruled that the transaction is subject to the tax because the operation of canteens or dining rooms is considered a business activity.
This ruling clarifies that concessions involving catering services in public facilities are taxable business activities, requiring VAT compliance for the fees paid to the administration.
The tax team reviews your specific situation.
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