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A City Council has requested clarification regarding the VAT and Transfer Tax (ITP/AJD) treatment following the termination of a property swap. Due to changes in the nature of the assets, different properties were received compared to the originals. The Directorate General for Taxes (DGT) ruled that if the value is analogous, this constitutes a termination of the initial transaction rather than a new supply of goods.
The tax team reviews your specific situation.
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