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A cultural theatre association has enquired whether it must apply VAT when receiving a transfer from another association to cover costs for a jointly organised event. The Directorate-General for Taxes (DGT) has ruled that such payments are not subject to the tax.
This ruling clarifies that cost-sharing arrangements between non-profit entities for joint activities do not constitute taxable transactions, provided they are not linked to a specific price or consideration.
The tax team reviews your specific situation.
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