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A query was raised regarding whether a foundation performing promotional activities for a Regulatory Council must apply VAT to the funds received. The DGT clarifies that if the arrangements are business collaboration agreements for activities of general interest, no service is provided; however, if they constitute advertising sponsorship, they are subject to VAT.
This ruling provides legal certainty for non-profit organisations, distinguishing between general interest collaborations (non-taxable) and commercial advertising (taxable).
The tax team reviews your specific situation.
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