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V2812-14 20 October 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · concesión administrativa

Orchestra services and recreational activities provided by a concessionaire to a local authority are subject to VAT

A local authority has requested clarification on whether the management of orchestra services and bullfighting festivities through public service management is subject to VAT. The Directorate General for Taxes (DGT) has ruled that although the administrative concession itself is not subject to the tax, the services provided by the successful bidder to the local authority are indeed subject to VAT.

The question raised

Liability for Value Added Tax.

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 specific services provided by the successful bidder to the City Council (such as orchestras or recreational activities) are subject to the tax as they constitute the provision of services carried out by an entrepreneur in the course of their business.

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