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A company has queried whether it can deduct VAT on the repair of a vehicle that is already subject to a 50% deduction limit. The DGT has ruled that the deductibility of repair costs is independent of the deductibility rules applied to the initial acquisition of the vehicle.
This ruling clarifies that the VAT treatment of maintenance and repair costs is assessed separately from the VAT treatment of the vehicle's purchase price.
The tax team reviews your specific situation.
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