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A parents' association has requested a ruling regarding the deductibility of VAT for activities such as selling school supplies and providing dining services. The Directorate General for Taxes (DGT) has determined that, when carrying out both taxable and non-taxable activities, the dual entity regime must be applied.
This ruling clarifies the VAT compliance requirements for non-profit associations, specifically regarding the proportional deduction of input VAT when managing mixed activities.
The tax team reviews your specific situation.
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