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An air conditioning company sought clarification on whether the delivery of used equipment to a recycling firm should be taxed at 10% as a waste management service. The DGT has ruled that, as this constitutes a delivery of goods rather than a collection or treatment service, the standard rate of 21% applies.
This ruling clarifies the VAT treatment for companies disposing of old equipment, confirming that selling used goods for recycling is subject to the standard rate rather than the reduced rate applicable to certain waste management services.
The tax team reviews your specific situation.
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