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A commercial entity has requested clarification on whether the provision of insolvency administration services to non-business natural persons residing in the Canary Islands is subject to VAT. The Directorate General for Taxes (DGT) has ruled that the transaction is subject to the tax and must be taxed at the standard rate.
This ruling clarifies the VAT treatment for insolvency practitioners providing services to private individuals in the Canary Islands, confirming that these services are subject to VAT at the standard rate rather than being exempt or subject to special territorial rules.
The tax team reviews your specific situation.
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