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A leasing company has enquired whether it must declare and pay VAT on its rental income when the Tax Agency has attached the debts owed by its client. The DGT has ruled that the landlord maintains its obligations to charge and declare the tax, and that the attachment may encompass the entire debt, including the VAT.
Landlords and leasing companies must ensure VAT compliance regardless of any legal attachment or seizure of the rental income owed to them.
The tax team reviews your specific situation.
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