Post by account_disabled on Mar 7, 2024 5:02:21 GMT
Have you ever wondered if municipalities can charge VAT ? Well, it will depend on what they sell, of course. If the sales are unrelated to any type of business or professional activity, they will not be subject to VAT , as is the case with any other entity, an example: the sale for scrapping of municipal police cars. city council vat Index What if what they charge are taxes? So, is there any case where councils have to collect VAT.
If municipalities do not charge VAT, they will not be Asia Mobile Number List able to deduct the amount they pay on their purchases either, correct? And isn't that some administrations charging taxes to others? What if what they charge are taxes? If what they charge are taxes, all the more reason. In the case of municipal taxes, it is evident that VAT does not have to be added , since in such case there is no supply of goods or provision of services susceptible to tax.
If what they charge us is a fee, the issue could be more debatable, since there does exist some type of benefit that could be discussed. The doubt is resolved directly by the VAT Law, which establishes that if what a public administration charges is a tax, and the rates are, the activity in question is not subject to VAT ( article 7.8 of the VAT Law ). An example: cemetery fees. So, is there any case where councils have to collect VAT? Yes, there are some cases in which municipalities have to collect VAT. This is the case of cases in which they compete with the private sector and, therefore, what they charge are public prices, for example, in municipal funeral homes. And also in relation to certain activities for which the VAT Law establishes this directly , such as, for example, the distribution of water.
Additionally, purely business activities should be mentioned , in which they act under private law, for example, the rental of offices, which would also be subject to VAT. If municipalities do not charge VAT, they will not be able to deduct the amount they pay on their purchases either, correct? That's right, if town councils do not charge VAT, they will not be able to deduct the amount they pay on their purchases either. For this reason, in the VAT Law, as well as in the Public Sector Contracts Law, there is an article that says that in the offers of goods and services to public administrations, the VAT must be considered included in the price . It is the way to avoid surprises in public procurement, once a certain budget has been reserved for anything.
If municipalities do not charge VAT, they will not be Asia Mobile Number List able to deduct the amount they pay on their purchases either, correct? And isn't that some administrations charging taxes to others? What if what they charge are taxes? If what they charge are taxes, all the more reason. In the case of municipal taxes, it is evident that VAT does not have to be added , since in such case there is no supply of goods or provision of services susceptible to tax.
If what they charge us is a fee, the issue could be more debatable, since there does exist some type of benefit that could be discussed. The doubt is resolved directly by the VAT Law, which establishes that if what a public administration charges is a tax, and the rates are, the activity in question is not subject to VAT ( article 7.8 of the VAT Law ). An example: cemetery fees. So, is there any case where councils have to collect VAT? Yes, there are some cases in which municipalities have to collect VAT. This is the case of cases in which they compete with the private sector and, therefore, what they charge are public prices, for example, in municipal funeral homes. And also in relation to certain activities for which the VAT Law establishes this directly , such as, for example, the distribution of water.
Additionally, purely business activities should be mentioned , in which they act under private law, for example, the rental of offices, which would also be subject to VAT. If municipalities do not charge VAT, they will not be able to deduct the amount they pay on their purchases either, correct? That's right, if town councils do not charge VAT, they will not be able to deduct the amount they pay on their purchases either. For this reason, in the VAT Law, as well as in the Public Sector Contracts Law, there is an article that says that in the offers of goods and services to public administrations, the VAT must be considered included in the price . It is the way to avoid surprises in public procurement, once a certain budget has been reserved for anything.