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A company has requested clarification on when it can deduct compensation for the purchase of fruit and vegetable products from farmers under the special scheme. The Directorate General for Taxes (DGT) has ruled that the deduction is only permissible once the compensation has been effectively paid.
This ruling clarifies that the tax deduction for agricultural compensations is contingent upon the actual settlement of the amount, rather than the mere accounting entry or obligation to pay.
The tax team reviews your specific situation.
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