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V0594-17 8 March 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · concesión administrativa

Administrative concession for the operation of a municipal swimming pool is not subject to VAT

A local council consulted whether the concession for the management of a municipal swimming pool was subject to VAT. The DGT ruled that the concession itself is not subject to VAT, although the services provided by the company to the council are.

The question raised

Subjectivity to Value Added Tax of the operation.

The DGT's ruling

The administrative concession for the operation of a municipal swimming pool is not subject to VAT, therefore the City Council must not charge the tax to the concessionaire. However, the services provided by the concessionaire to the City Council are subject to the tax, and the corresponding tax must be charged for such services. The fact that the remuneration includes a monthly fee does not change the non-subjectivity of the concession.

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