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A consortium of municipalities has requested clarification on the VAT rate applicable to the provision of water supply and sanitation services. The Directorate-General for Taxes (DGT) has ruled that these activities are subject to VAT and must apply the reduced rate of 10%.
This ruling clarifies the tax obligations for local authorities and water management entities, ensuring the correct application of the reduced VAT rate for essential water services.
The tax team reviews your specific situation.
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