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A query was raised regarding whether Common Agricultural Policy (CAP) subsidies should be included in turnover when applying the simplified direct estimation method. The Directorate-General for Tax (DGT) has ruled that decoupled aid does not form part of said turnover.
This ruling provides legal certainty for agricultural businesses using the simplified direct estimation method, as decoupled CAP subsidies will not count towards the turnover threshold that determines eligibility for this tax regime.
The tax team reviews your specific situation.
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