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A local authority has requested clarification on whether the management of orchestra services and bullfighting festivities through public service management is subject to VAT. The Directorate General for Taxes (DGT) has ruled that although the administrative concession itself is not subject to the tax, the services provided by the successful bidder to the local authority are indeed subject to VAT.
This ruling clarifies the tax treatment for companies managing public services under administrative concessions, confirming that the service provision to the public authority triggers VAT liability, even if the concession agreement itself is exempt.
The tax team reviews your specific situation.
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