A unique tax position for city councils
The tax position of city councils is unique with respect to VAT & real property transfer tax. In addition to the normal VAT system that applies for businesses, city councils have the “VAT Compensation Fund” for reclaiming VAT on expenses (input tax) that are incurred in the administrative sphere. City councils also engage in transactions in the commercial sphere, including VAT-exempt transactions, so the input tax of city councils must be divided into different categories. We have many years of experience with these issues and provide advice to city councils, joint schemes and partnerships of city councils. For example, our knowledge of city councils and of (development of real property by) commercial parties is combined in construction projects realised by city councils.