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A query was raised regarding whether commissions for mediation services in vehicle sales, paid by a dealership, are exempt from VAT. The DGT ruled that for mediation to qualify for exemption, the provider must be an independent third party that brings the parties together, rather than merely providing information or receiving requests.
This ruling clarifies the strict requirements for VAT exemption in mediation services, emphasizing the necessity of the mediator's independence and active role in bringing parties together.
The tax team reviews your specific situation.
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