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A canning company has enquired whether the destruction of plastic packaging acquired through intra-Community transactions allows for a tax exemption. The DGT clarifies that an exemption only applies if destruction occurs due to extraordinary circumstances before the packaging has fulfilled its function, rather than as a result of its natural life cycle.
Companies must ensure that any destruction of plastic packaging intended for tax exemption is caused by unforeseen or extraordinary events, as standard end-of-life disposal does not qualify.
The tax team reviews your specific situation.
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