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Are Municipalities taxable persons as providers of Collective waste management systems?

A proposal on the taxability of services provided by municipalities to the operators of collective systems in connection with subcontracting of waste collection has been submitted to the Coordination Committee of CTA CR and GFD. The submitter suggests that the accepted payments should be taxed by the municipalities. Such a conclusion would have a material impact on the municipalities as they currently do not pay VAT on the payments in question.

Source Deloitte

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