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A civil servant providing occasional legal advice to friends and family asks whether VAT must be applied. The DGT rules that while free services are not subject to VAT, if services are remunerated and there is an intention to participate in the market, the individual acquires professional status and the services become taxable.
This ruling clarifies the threshold between occasional, non-taxable assistance and professional activity subject to VAT, emphasizing the role of remuneration and market intent.
The tax team reviews your specific situation.
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