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A landlord leases office premises and covers water and electricity costs, subsequently recharging them to the tenant. The DGT has ruled that these expenses do not constitute disbursements, but rather a re-invoicing that follows the tax treatment of the lease.
Landlords must apply the standard VAT rate to utility re-invoicing rather than treating them as disbursements, affecting how costs are recovered and reported.
The tax team reviews your specific situation.
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