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A City Council inquired whether the recipient of VAT for water supplies from a desalination plant is the Council or the service concessionaire. The Directorate-General for Taxes (DGT) ruled that the recipient is the concessionaire, as they are the party making the direct acquisition and hold the position of creditor in the payment obligation.
This ruling clarifies that for VAT purposes, the entity directly purchasing the water under a concession agreement is the legal recipient, rather than the public administration granting the concession.
The tax team reviews your specific situation.
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