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An individual inquired whether it is correct for their energy supplier to apply new VAT rates to invoices for consumption occurring before 1 January 2024. The DGT ruled that the applicable rate is the one in force at the time of accrual, which, in the case of supplies, occurs when the price becomes due.
This ruling clarifies the timing of VAT application for continuous supply services, ensuring consistency in tax rates applied to billing cycles that span different tax periods.
The tax team reviews your specific situation.
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