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A local council has requested clarification on whether it is the recipient of services provided by a managed care home and if it can deduct VAT on partial payments made. The Directorate General for Taxes (DGT) ruled that the actual recipients are the users and that the council, acting as the end consumer, is not entitled to deduct the VAT.
This ruling clarifies that local authorities acting as intermediaries in social service contracts cannot reclaim VAT if they are considered the final consumer of the service rather than the direct recipient.
The tax team reviews your specific situation.
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