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A taxpayer has inquired whether payments made to a new concessionaire following the end of a waste management concession are subject to VAT. The DGT has ruled that compensation for damages is not taxable, whereas payments for the treatment of accumulated waste are subject to VAT.
This ruling clarifies the distinction between non-taxable compensation for damages and taxable consideration for services rendered, specifically regarding waste management obligations.
The tax team reviews your specific situation.
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