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A taxpayer under the simplified VAT regime enquired whether the VAT paid on the premium for a business premises lease could be deducted as a fixed asset or as a current acquisition. The Directorate General for Taxes (DGT) ruled that it must be deducted as a current transaction.
This ruling clarifies the accounting treatment for VAT on lease premiums, ensuring consistency in how business transfer costs are categorised for deduction purposes.
The tax team reviews your specific situation.
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