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A company sought clarification on whether the residential and non-healthcare services within a hospital management concession should be subject to the reduced VAT rate. The DGT has ruled that, as it constitutes a single integrated management operation, the standard rate applies.
This ruling clarifies that integrated management contracts for hospital services cannot be split to apply reduced rates to non-healthcare components; the entire operation is subject to the standard VAT rate.
The tax team reviews your specific situation.
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