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V0634-17 13 March 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · empresario o profesional

Local authority camping services subject to VAT if carried out as a business activity

A local authority has requested clarification on whether charging a public fee for temporary camping areas is subject to VAT. The Directorate General for Taxes (DGT) has ruled that if the activity involves organising resources to intervene in the market, the local authority acts as a business entity and the transaction is subject to VAT.

The question raised

Liability and, where applicable, exemption of the transaction within the scope of VAT.

The DGT's ruling

The transaction shall be subject to VAT if the City Council acts as a business or professional by ordering means of production to intervene in the market, even if on an occasional basis. It shall not be subject if the provision is punctual, isolated, and without intention of continuity. If subject, the reduced rate of 10% shall apply as it is a camping service.

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