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A local council has requested clarification on the VAT rate applicable to invoices issued by a Consortium for potable water supply services. The Directorate-General for Taxes (DGT) has ruled that these operations are subject to VAT and must apply the reduced rate of 10%.
This ruling clarifies the tax treatment for water management services provided by public consortia to local authorities, ensuring the application of the reduced VAT rate.
The tax team reviews your specific situation.
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