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An irrigation community has requested clarification on whether it can deduct VAT for hydraulic works and a photovoltaic plant, and whether levies (derramas) are subject to VAT. The Directorate General for Taxes (DGT) ruled that the photovoltaic plant generates taxable activities (self-consumption and sale of surplus energy) and that levies for common community expenses are not subject to VAT.
The tax team reviews your specific situation.
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