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Does a municipality act in the operation of cemeters as government?
17 July 2020 - On 19 June 2020, the Supreme Court ruled whether a municipality acts as a government in the operation of cemeteries. The Supreme Court indicates that the fact that a municipality carries out a statutory task is not sufficient to conclude that that activity qualifies as a government act. The task itself, in this case the operation of a cemetery, must also imply that a municipality acts on the basis of specific governmental powers. As a result, the VAT Compensation Fund (BCF) excludes a full compensation of the VAT charged to the municipality for these activities.
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