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A Provincial Council has requested clarification regarding the VAT regime applicable to the licensing of software applications and training services to other local authorities. The Directorate General for Taxes (DGT) has determined that, as these are entities from other provinces, the transactions are subject to the standard VAT rate.
This ruling clarifies that inter-entity transfers of software and services between local authorities in different provinces do not qualify for exemptions or reduced rates, necessitating the application of the standard 21% VAT rate.
The tax team reviews your specific situation.
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