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A consultant inquired about the VAT treatment when rebilling expenses they have personally paid (some exempt and others at a reduced rate). The DGT clarified that if these are not disbursements, independent rebilling constitutes a service provision subject to the standard VAT rate.
Businesses must distinguish between disbursements and the rebilling of expenses, as the latter requires applying the standard VAT rate regardless of the original expense's rate.
The tax team reviews your specific situation.
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