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A public water supply and purification company has enquired whether its services are subject to VAT when managed through a delegation from a City Council. The DGT has ruled that water distribution activities are always subject to the tax, regardless of their tax nature or whether they are managed through a delegation.
This ruling clarifies that the management model (delegation) does not exempt water services from VAT, ensuring tax consistency for public water utilities.
The tax team reviews your specific situation.
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