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V0214-16 21 January 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · concesión administrativa

Administrative concession for the management of a care home and day centre is not subject to VAT

A company has requested clarification on whether the fee payable for the award of the management of a care home and day centre is subject to VAT. The DGT has ruled that such an administrative concession is not subject to the tax.

The question raised

Liability for Value Added Tax on the fee that the successful bidder must pay.

The DGT's ruling

The public service management contract for the operation of a residence and day center for the elderly is classified as an administrative concession. As it is a concession that does not fall within the exceptions of Article 7.9 of Law 37/1992, it is not subject to VAT. Therefore, the tax must not be charged on the fee that the company is required to pay.

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