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A homeowners' association has enquired whether it can deduct VAT on ancillary services and whether its members can deduct the fees paid to the association. The Directorate General for Taxes (DGT) responds that the association is only a taxable person for specific business activities, such as leasing antennas, and that members may deduct VAT provided that invoicing regulations are met or through the exceptional route of European case law.
This ruling clarifies the tax status of homeowners' associations and the specific requirements for members to reclaim VAT on association fees.
The tax team reviews your specific situation.
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