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A company sought clarification regarding the VAT accrual for a contract involving a purchase commitment and product promotion, and whether previously issued invoices required rectification. The DGT ruled that these constitute two independent services with distinct accrual rules and that if an invoice was issued in error prior to accrual, it may be rectified.
Companies providing combined services must correctly distinguish between continuous and single-event services to ensure VAT is accrued at the appropriate time, avoiding incorrect invoicing.
The tax team reviews your specific situation.
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