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V0910-16 10 March 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeción

Telecommunications activities carried out by a consortium are subject to VAT

A consortium of public entities has requested clarification on whether telecommunications work performed for consideration is subject to VAT. The Directorate General for Taxes (DGT) has ruled that, as it is a telecommunications activity, it will always be subject to the tax.

The question raised

Liability for Value Added Tax regarding the work performed by the consulting Consortium.

The DGT's ruling

Telecommunications activities carried out by Public Administrations are always subject to VAT, even if their consideration is of a tax nature. If the activity is not included in the list of Article 7.8 of Law 37/1992, the services provided to the Public Administrations upon which the consortium depends shall not be subject to the tax, provided that these hold full ownership thereof. This non-subjectivity does not apply to services provided to third parties nor to the supply of goods.

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