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A company has requested clarification on whether entrance to a cave tour that includes a live concert should be taxed at 10% or 21% VAT. The DGT has determined that the tour is the principal service and the music is ancillary, meaning the standard rate applies.
This ruling clarifies the distinction between principal and ancillary services in tourism packages, ensuring that combined activities are taxed based on the main component rather than the reduced rate of the secondary element.
The tax team reviews your specific situation.
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