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A query was raised regarding whether co-owners of an industrial estate, acting as business entities, can deduct VAT on services provided by the urban development and maintenance entity. The DGT ruled that the entity is a taxable person and must charge VAT on non-exempt services, thereby allowing members to claim deductions provided they meet the legal requirements.
This ruling clarifies the VAT treatment for industrial estate co-owners, confirming that correct invoicing by the urban development entity enables VAT recovery for business members.
The tax team reviews your specific situation.
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