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VAT Treatment of Joint Services in Collaboration: Case Study of A and B Partnership

  • Knowledge group on VAT answered a question about VAT on mutual services in collaboration
  • Case involves A offering farmland in the Netherlands, with B acting as a mediator
  • A and B jointly assess potential and marketability before A buys the land
  • They create a sales brochure together and sign a partnership agreement
  • B shares in profit and risk, based on profit margin from land sales
  • A buys the land and bears all transaction costs
  • A and B do not jointly provide farmland to third parties
  • A acts independently, while B provides a service to A

Source: futd.nl

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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