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An association has enquired whether vehicle reconditioning costs can be added to the purchase price when calculating the profit margin under the special scheme. The DGT has ruled that these costs do not form part of the purchase price, although they may be deducted as incurred VAT.
This ruling clarifies that reconditioning costs must be treated as deductible expenses rather than being incorporated into the purchase price for margin calculation purposes under the special regime.
The tax team reviews your specific situation.
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