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A leasing company has requested guidance on how to document and when to invoice the reversion of works paid for by the tenant that subsequently become the property of the landlord. The DGT has ruled that such works constitute part of the lease consideration and are subject to VAT.
This ruling clarifies that improvements paid for by a tenant that revert to the landlord must be treated as part of the lease consideration, affecting how VAT is calculated and when it becomes due.
The tax team reviews your specific situation.
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