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V0708-14 13 March 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · concesión administrativa

Cleaning and waste management services provided by a concessionaire to a local council are subject to VAT

A local council has requested clarification on whether street cleaning and waste management services are subject to VAT. The DGT clarifies that while the administrative concession itself is not subject to the tax, 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 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 by virtue of said concession are subject to the tax.

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