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A query was raised regarding whether livestock shearing services provided to an individual with sheep for family subsistence could qualify for the 10% reduced VAT rate. The Directorate General for Taxes (DGT) ruled that this service is not listed in the law as eligible for such a rate.
This ruling clarifies that shearing services do not qualify for the reduced VAT rate, meaning providers must apply the standard 21% rate, potentially increasing costs for small-scale livestock owners.
The tax team reviews your specific situation.
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