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An educational centre selling electricity via a photovoltaic installation has enquired whether it can deduct VAT on the maintenance costs of said installation. The DGT has ruled that the sale of electricity is a taxable activity and not an exempt one, thereby allowing for the deduction of related expenses.
This ruling clarifies that entities generating and selling electricity can recover VAT on associated operational costs, provided the activity is taxable.
The tax team reviews your specific situation.
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