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Management of Public Services: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 15 rulings · 2014–2021

Current position

The administrative concession for the management of public services is not subject to IVA (Value Added Tax) pursuant to Article 7.9 of Law 37/1992. In order to qualify as such, the entrepreneur must assume the exploitation risk, evaluating whether investments are made or whether the remuneration depends on the intensity of use. The services provided by the concessionaire to the City Council are subject to the tax.

The DGT's position remains constant regarding the non-subjectivity of the administrative concession to IVA. Throughout various rulings, the administration has specified the necessary elements to qualify the contract as a concession, such as the assumption of the risk of loss or the dependence of the remuneration on the demand or availability of the service.

Turning points

  1. V0871-16

    Establishes that for a concession to exist, the entrepreneur must manage the service at their own risk and venture, assuming the risk of loss.

  2. V0286-21

    Specifies that the assumption of exploitation risk is evaluated through parameters such as the making of investments or the dependence of the remuneration on the intensity of use.

Analysis based on 15 of 15 rulings with a stated position. Updated 26 September 2026.

Rulings on this topic

15
V0714-18 16 Mar 2018

Administrative concession of a municipal gym is not subject to VAT

SG de Impuestos sobre el Consumo
concesión administrativagestión de servicios públicosasunción de riesgono sujeciónprestación de servicios LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5
Affects CompanyExpat · Non-residentIndividual

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