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A public commercial promotion company has requested clarification on the VAT rate applicable to its various business promotion activities. The Directorate General for Taxes (DGT) has ruled that the 10% reduced rate for trade fairs and exhibitions is only applicable if the applicant acts as the organiser of said events.
This ruling limits the application of the reduced VAT rate for companies providing promotional services, ensuring it is strictly reserved for those acting as organisers or mediators in their own name.
The tax team reviews your specific situation.
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