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An agency firm enquired whether it could agree on a commission of up to 70% with dealerships and whether such expenses and the input VAT were deductible. The DGT ruled that the percentage is freely negotiable and that expenses and VAT are deductible provided legal requirements are met.
This ruling provides legal certainty for agency and intermediary services, confirming that commission rates are subject to freedom of contract, provided they are not influenced by related-party links, and affirming the deductibility of such costs and VAT.
The tax team reviews your specific situation.
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