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A clothing retailer under the equivalence surcharge scheme asks whether leasing part of their sign for telecommunications equipment is subject to VAT and if expenses can be deducted. The DGT rules that the lease is subject to the general regime and creates a separate sector of activity.
This ruling clarifies that activities such as leasing advertising space on business signage are treated as distinct from the main commercial activity, requiring the application of the general VAT regime and potentially affecting the proportionality of VAT deductions.
The tax team reviews your specific situation.
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