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A Provincial Council has requested clarification on whether the transfer of software applications and associated services to other local authorities is subject to VAT. The Directorate General for Taxes (DGT) has ruled that, as the entities are located in different provinces, the transaction is subject to VAT at the standard rate.
This ruling clarifies the VAT treatment for inter-entity software transfers, confirming that transfers between local authorities in different provinces do not qualify for exemptions and must be taxed at the standard rate.
The tax team reviews your specific situation.
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