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A taxpayer inquired whether a document used to recharge expenses within an irrigation community qualifies as an invoice. The DGT ruled that if the expenses arise from water management and use (which are not subject to VAT), there is no obligation to issue an invoice.
This ruling clarifies that costs related to water management activities exempt from VAT do not trigger the formal requirement to issue a VAT invoice when being passed on to users.
The tax team reviews your specific situation.
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