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A Municipality 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 determined that these operations are subject to VAT and that the corresponding reduced rates must be applied.
This ruling clarifies the VAT treatment for water services provided by public consortia to local authorities, confirming the application of reduced rates for water supply and sanitation.
The tax team reviews your specific situation.
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