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A commercial entity has requested clarification regarding the VAT implications of selling a second-hand vehicle to a private individual. The DGT has ruled that the transfer is subject to tax only in respect of the portion used for business activities, and not for the portion that forms part of the individual's private assets.
This ruling clarifies that when a vehicle serves dual purposes (business and private), VAT is only applicable to the proportion of the transaction corresponding to the business use.
The tax team reviews your specific situation.
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