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A concessionaire of a mixed-use car park has requested clarification on whether passing on maintenance and common service costs to resident parking users is subject to VAT. The DGT has ruled that such re-invoicing constitutes a taxable transaction when carried out by the entity in its capacity as a business.
This ruling clarifies that the recovery of shared costs by a concessionaire is not a mere reimbursement of expenses but a taxable service provided to users.
The tax team reviews your specific situation.
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