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V2179-17 ·22 August 2017 ·consulta-vinculante Medium impact
Tax

Granting of a café-bar concession in a municipal building is subject to VAT

A City Council sought clarification on whether the concession to operate a café-bar in a municipal building was exempt from VAT on the basis of being an administrative concession. The Directorate-General for Taxes (DGT) ruled that these types of agreements are special administrative contracts rather than public domain concessions, and therefore must be subject to VAT.

In 6 key points

How it affects those involved

This ruling clarifies the tax treatment for municipal service contracts, distinguishing between public domain concessions and special administrative contracts for VAT purposes.

Lifecycle

2017-08-22PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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