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A company has requested clarification on whether Urban Development Entities involved in maintenance must apply VAT to their services. The Directorate-General for Taxes (DGT) has ruled that VAT exemption applies only to maintenance services for spaces that are part of the public domain and for public use.
This ruling clarifies the scope of VAT exemptions for urban development entities, limiting the benefit strictly to spaces designated for public domain and use, thereby affecting the tax treatment of maintenance services for private or non-publicly accessible areas.
The tax team reviews your specific situation.
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