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A vehicle dealer sought clarification on whether its financial mediation activity between buyers and banking institutions was exempt from VAT. The DGT ruled that the activity is exempt provided the dealer acts as a genuine mediator that brings the parties together, rather than merely providing information or receiving applications.
This ruling clarifies the criteria for VAT exemption in financial mediation services provided by non-financial entities, emphasizing the need for active involvement in the mediation process to qualify for exemption.
The tax team reviews your specific situation.
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