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A query was raised regarding whether amounts paid by dealerships to a management company to reimburse expenses incurred by the latter on their behalf should be subject to VAT. The DGT ruled that, provided the requirements for disbursements (suplidos) are met, these amounts do not form part of the taxable amount for the management company's services.
This ruling clarifies that reimbursements for expenses incurred on behalf of a client do not constitute part of the service provider's consideration, provided they qualify as disbursements, thereby reducing the VAT burden on such transactions.
The tax team reviews your specific situation.
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