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The Ministry of Defence has requested a ruling regarding the taxation of an automated translation service contracted from a German company via the internet. The Directorate General for Taxes (DGT) has determined that the service is electronically supplied and that the Public Administration must apply the reverse charge mechanism.
This ruling clarifies the VAT treatment for public entities when procuring digital services from non-established providers, confirming the obligation to apply the reverse charge mechanism for electronically supplied services.
The tax team reviews your specific situation.
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