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A City Council has requested clarification on the VAT rate applicable to invoices issued by a Consortium for drinking water supply services. The Directorate-General for Taxes (DGT) has ruled that these operations are subject to VAT and must be charged at the reduced rate of 10%.
This ruling confirms the application of the 10% reduced VAT rate for water supply and sanitation services provided by public consortia, ensuring tax certainty for local authorities and service providers.
The tax team reviews your specific situation.
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