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A company asks whether advance payments trigger VAT liability in intracommunity deliveries or purchases and how to declare them. The DGT confirms that no VAT liability arises in advance and that such transactions must be reported in form 349 when the actual liability arises.
Businesses involved in intracommunity transactions must ensure that VAT liability is only recognised upon actual delivery or receipt of goods, and must report such transactions in form 349 when the liability arises.
The tax team reviews your specific situation.
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