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A plastic artist asks about the deductibility of VAT incurred in activities including sales of artworks (taxable) and transfer of copyright (exempt). The DGT responds that only VAT related to taxable and non-exempt operations is deductible, with the prorata rule applying if shared use exists.
Artists and professionals engaged in mixed activities must distinguish between taxable and exempt operations when claiming VAT deductions.
The tax team reviews your specific situation.
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