Lessor denied reduced VAT deduction for air conditioning repairs

The Supreme Administrative Court issued a decision in a case involving air-conditioning repair in a building with leased premises that were, depending on their location in the building, subject to value added tax (VAT). At issue was a claim for a reduced VAT deduction. According to the court’s decision, the connection between the taxable supply received and the taxable supply provided was not demonstrated; thus, the claim for a reduced VAT deduction was denied.

Source: KPMG

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