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How should I treat a related customer or vendor from a VAT perspective?  This is very frequently a dilemma which we are faced and which unfortunately there's a lot of misconception surrounding it. 

Step-by-step guide

A related party does not trigger a different VAT treatment and the standard VAT Business posting group should be applied. 

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It's to be noted that the setup for Intercompany is not being taken into consideration here, as it necessitates a number of setups as does not fall within the scope of the query. 


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