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An energy management company enquired whether heating supplies could qualify for the reduced 5% VAT rate. The DGT ruled that heating services are subject to 21% VAT; however, if the operation constitutes a supply of natural gas on the company's own account, the 5% rate would apply.
This ruling clarifies the distinction between service-based heating provision and the direct supply of gas, which determines the applicable VAT rate.
The tax team reviews your specific situation.
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