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A used vehicle dealership has enquired whether repair and spare part costs should be added to the purchase price when calculating the profit margin under the special scheme. The DGT has ruled that the purchase price refers solely to the consideration paid to the transferor and does not include subsequent repair expenses.
This ruling clarifies that for the calculation of the profit margin in the special scheme for second-hand goods, subsequent repair costs cannot be incorporated into the purchase price, potentially affecting how businesses calculate their taxable base.
The tax team reviews your specific situation.
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