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A company has requested clarification on the VAT rate applicable to the rental of vehicles with a driver. The DGT has determined that this activity constitutes a form of passenger transport rather than a vehicle rental service.
Question raised: Value Added Tax rate applicable to the operations.
The rental of passenger vehicles with a driver constitutes a mode of passenger transport according to the Land Transport Regulation Act. Therefore, as it is a form of passenger transport, the applicable tax rate is 10% pursuant to Article 91.1.2.1º of Law 37/1992.
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