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JUDGMENT
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The Supreme Court agrees with the Bizkaia Treasury in the VAT case and Euskadi will recover EUR 700 million

He has ruled on the disagreement between the Hacienda Foral and the Hacienda Estatal over the VAT of the company Coca-Cola. In these cases, he has ruled on who should collect the VAT.

Renta Hacienda Bizkaia Ogasuna Errenta
The ruling comes as a result of discrepancies over Coca-Cola's VAT collection. Photo: EFE.

The Supreme Court has ruled in favour of the Provincial Council of Bizkaia on the collection of VAT , which obliges the State Treasury to return EUR 700 millionto the Basque community.

The ruling relates to a dispute over the collection of VAT by the company Coca-Cola. The discrepancies between the State Treasury and the Foral Treasury arose when deciding who should collect the VAT fromthat company and the conflict reached the courts.

Coca-Cola's headquarters in Estados is located in Madrid, but its main production and logistics centre is the Galdakao (Bizkaia) plant, a feature that has ensured Bizkaia's interpretation of the rule that VAT should be collected.

Thus, the Bizkaia Treasury has recovered EUR 252 million, the amount it had to pay to the State Treasury for the years 2013-2016, and sets the criterion for VAT refunds for the following years, so that a total of around EUR 700 million will reach the ACV.

The Supreme Court's decision affects the three Basque territories, since the ruling statesthat, although the factories belong to the same group, in cases such as , the refund of VAT must be made through the Treasury.

In this regard, the General Representative of Álava, Ramiro González, said on Radio Euskadi that "it is very important for the Basque Country" because it "marks how the collection of VAT should be carried out". The judgment "impliesthe consolidation of the Economic Concert "and adds that" it determines that Bizkaia was right in the interpretation of the rule ".

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