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An elderly care residence association queried whether dining services contracted from an external company could qualify for the reduced 4% VAT rate. The Directorate General for Taxes (DGT) ruled that these services are subject to the standard 10% rate.
Residential care facilities using external catering providers must apply a 10% VAT rate rather than the 4% reduced rate, affecting cost structures and tax compliance.
The tax team reviews your specific situation.
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