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A street vendor association has requested a ruling on whether managing and recharging expenses (fees, insurance, gazebos) to its members is subject to VAT and whether these expenses are deductible for Corporation Tax purposes. The DGT has determined that this activity constitutes an economic activity subject to both taxes.
Professional associations that manage and recharge costs to their members must account for VAT and Corporation Tax on these transactions, as they are considered economic activities rather than mere disbursements.
The tax team reviews your specific situation.
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