- The concession for operating municipal swimming pools awarded by a city council to a company is not subject to VAT under Article 7.9 of the Spanish VAT Law (LIVA).
- A service contract for operating municipal swimming pools would be subject to VAT.
- In a service concession, the contractor manages a public service in exchange for the right to exploit it, and the operational risk is transferred to the concessionaire.
- The arrangement may also be a demanial concession, which would not follow public procurement rules.
- In service contracts, the public administration retains the operational risk and acts as an entrepreneur/professional, so the non-taxable treatment of Article 7.9 LIVA does not apply.
Source: allyon-etl.es
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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