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A local council has requested guidance on which tax rate to apply when refunding urbanisation fees to owners following a court ruling. The DGT has ruled that the rate in force at the time the original transaction accrued must be applied, and that the rectification must be carried out using credit notes.
This ruling clarifies the tax rate applicable to VAT rectifications resulting from judicial decisions, ensuring consistency with the original transaction's timing.
The tax team reviews your specific situation.
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