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FTT – payroll service “closely linked to welfare”

Useful reminder about purpose and objective of the VAT exemptions in terms of reducing the cost to the end consumer and making supplies of services in the general interest more accessible. The FTT specifically did not look at the liability of similar supplies provided by the taxpayer to local authorities where it is better if the supply is taxable as the local authority, if it is the recipient of the supply, can recover the VAT.

Source KPMG

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