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A religious association has enquired whether providing accommodation and care services to its members free of charge is subject to VAT. The DGT has ruled that, as there is no consideration involved, the entity is not acting as a business or professional.
This ruling clarifies that the absence of a charge or consideration prevents an activity from being classified as a taxable supply for VAT purposes, even when services are provided within an organisation.
The tax team reviews your specific situation.
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