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A Regional Council has enquired whether home care services, to be managed through a commercial entity with entirely public capital, are subject to VAT. The Directorate-General for Taxes (DGT) has ruled that they will not be subject to VAT provided the requirements for a management mandate to a separate legal entity are met.
This ruling clarifies the VAT status for public administrations outsourcing management tasks to public companies, potentially reducing tax burdens for home care services managed through such structures.
The tax team reviews your specific situation.
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