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An unincorporated entity queried whether donating the net profits from a crowdfunding campaign to an NGO is subject to VAT. The DGT ruled that the donation does not constitute consideration for a service, but rather a non-reciprocal grant with no economic interest, meaning there is no taxable transaction.
This ruling clarifies that crowdfunding campaigns intended for charitable purposes, where profits are donated without providing a service in return, fall outside the scope of VAT.
The tax team reviews your specific situation.
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