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Carbon Absorption Rights Transmission: Tax Implications for Mercantile Entities

  • Entity transmitting carbon absorption rights to other entities
  • Transactions related to carbon absorption projects are considered services for VAT purposes
  • If rights fall under emissions trading regulations, reverse charge applies
  • Same applies if absorption rights can be used by operators equivalent to emission rights in regulations

Source: audiconsultores-etlglobal.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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