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V0783-15 10 March 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · medio propio

Services of a public administration's own medium not subject to VAT under certain management and ownership conditions

A publicly owned commercial society, with public medium status and technical services, inquires about the VAT applicability of its services. The DGT determines that services provided under management delegation or to the owning administration are not subject to VAT, but those provided to public enterprise bodies or commercial companies are.

The question raised

Taxability of the services provided by the applicant.

The DGT's ruling

Services provided through management mandates are not subject to Tax when the provider holds the status of an instrumental internal resource and technical service of the mandating Public Administration. Services provided to the Public Administration on which it depends, or to another entity entirely dependent upon it, are also not subject to Tax when the latter holds full ownership of the same. Notwithstanding, services provided to public business entities or commercial companies dependent on the Administration shall be subject to Tax. Likewise, services corresponding to the activities listed in Article 7.8 of the Law (such as telecommunications, transport, or energy) shall always be subject to Tax.

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