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A tenant inquired whether the amount of Property Tax (IBI) passed on by the landlord in the rent invoice should be included in the VAT taxable amount. The Directorate General for Taxes (DGT) ruled that it must, as any effective credit from the landlord to the tenant arising from the service constitutes part of the consideration.
Landlords must ensure that any property taxes recharged to tenants are included in the VAT calculation for rental invoices to comply with tax regulations.
The tax team reviews your specific situation.
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