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A sole trader managing musical groups for various organisers has enquired whether the reduced 10% VAT rate can be applied. The DGT has ruled that, as they are acting as a business entity rather than as an individual performer or artist, the standard rate of 21% must be applied.
This ruling clarifies that management services provided by sole traders are subject to the standard VAT rate, preventing the application of the reduced rate intended for individual performers.
The tax team reviews your specific situation.
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