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A local council has requested clarification on whether comprehensive time attendance services provided by a company based in the Canary Islands are subject to VAT. The DGT ruled that, as the council is not a taxable person and the company has no permanent establishment on the mainland, the transaction is not carried out within the territory subject to VAT.
This ruling clarifies the VAT implications for services provided by Canary Islands-based companies to non-taxable entities (such as local authorities) when no permanent establishment exists on the mainland, confirming the transaction occurs outside the VAT territory.
The tax team reviews your specific situation.
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