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A homeowners' association enquired whether it could charge VAT on services that were not previously billed. The Directorate General for Taxes (DGT) ruled that homeowners' associations are end consumers rather than businesses; therefore, they are unable to charge VAT to members or claim tax deductions.
This ruling clarifies that homeowners' associations lack the legal status of taxable persons for VAT purposes, preventing them from passing on VAT costs to owners or reclaiming it from tax authorities.
The tax team reviews your specific situation.
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