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A court-appointed administrator seeks clarification on the impact of a judicial challenge to their fees on VAT and Income Tax. The DGT rules that if a judgment alters the price, the VAT taxable base and Income Tax earnings must be rectified in accordance with accrual rules.
This ruling clarifies the obligation to adjust tax liabilities when judicial decisions modify the final price of services, ensuring compliance with accrual principles for both VAT and Income Tax.
The tax team reviews your specific situation.
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