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The applicant inquired whether the lease of a goat farming operation (including land, buildings, and milking machinery) is exempt from VAT. The DGT ruled that, because it includes elements that allow the previous activity to be maintained, it constitutes a business lease subject to the standard rate.
This ruling clarifies that leasing an entire functional economic unit, rather than just land, triggers VAT obligations as it is classified as a business lease.
The tax team reviews your specific situation.
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