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A municipal association has requested clarification on whether the sale of a second-hand motor grader and a truck is subject to VAT. The DGT has ruled that the transaction is subject to the tax, as it is carried out for non-taxable consideration and does not fall under the exemptions for Public Administrations.
This ruling clarifies that transactions by public entities involving non-taxable consideration are subject to VAT, preventing them from claiming non-taxability status.
The tax team reviews your specific situation.
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