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A local council has enquired whether a concession for operating a bar in a municipal swimming pool is exempt from VAT under the principle of non-liability of Public Administrations. The DGT ruled that the operation is subject to the tax because the fee charged constitutes consideration of a non-tax nature.
This ruling clarifies that revenue from concessions for the use of public domain assets is considered taxable consideration rather than a tax levy, meaning VAT must be applied to the concession fees.
The tax team reviews your specific situation.
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