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A consultancy queried whether the supply of medicines by veterinary clinics could be considered a principal supply to allow for the 10% reduced VAT rate. The DGT ruled that if the supply of medicines is ancillary to the veterinary service, it shall follow the tax rate applicable to the principal supply.
This ruling clarifies the VAT treatment for veterinary clinics, ensuring that the supply of medicines is taxed according to the nature of the primary service provided rather than being treated as a standalone supply.
The tax team reviews your specific situation.
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