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A company acquiring property through insolvency proceedings has enquired whether it can deduct VAT on homeowners' association fees (both prior to and following the acquisition) and what requirements must be met. The DGT has ruled that VAT on fees incurred before the acquisition cannot be deducted; however, fees incurred after the acquisition are deductible provided that invoicing requirements are met or via European case law.
The tax team reviews your specific situation.
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