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V0083-16 13 January 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · concesión administrativa

Parking management and vehicle removal services provided to a local authority are subject to VAT

A company sought clarification on whether regulated parking management and vehicle impoundment services were subject to VAT. The DGT ruled that while the administrative concession itself is not subject to the tax, the services provided by the company to the local authority are.

The question raised

Liability for Value Added Tax.

The DGT's ruling

The administrative concession for the management of public services is not subject to VAT pursuant to Article 7.9 of Law 37/1992. However, the services provided by the successful bidder to the City Council (such as control, equipment maintenance, or tank management) are subject to the tax. The taxable base for such services shall be the total amount of the consideration, including concepts such as the cost of the service and the surplus.

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