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An individual has enquired whether the acquisition of a State lottery and betting licence is subject to VAT. The DGT has ruled that if the transfer is limited to the mere assignment of the commercial contract, without a set of elements constituting an autonomous economic unit, the transaction is subject to the tax.
This ruling clarifies that the transfer of a single licence, in isolation from a broader business structure, constitutes a taxable supply of services rather than an exempt transfer of a business undertaking.
The tax team reviews your specific situation.
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