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A query was raised regarding whether heating and hot water supply by energy management companies can qualify for the reduced 5% VAT rate. The DGT ruled that heating services are taxed at 21%, but if the company invoices the delivery of natural gas in its own name, the 5% rate may apply.
This ruling clarifies the distinction between service-based heating provision and the supply of goods, affecting how energy management companies structure their billing and VAT obligations.
The tax team reviews your specific situation.
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