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A company requested clarification on whether residential rentals including services such as daily cleaning, laundry, and catering qualify for the VAT exemption applicable to housing. The DGT ruled that, as these operations provide services characteristic of the hotel industry, they are not exempt and must be taxed at the 10% reduced rate.
This ruling clarifies that providing hospitality-style amenities transforms a residential lease into a taxable service, preventing the use of the housing VAT exemption for short-term or serviced accommodation.
The tax team reviews your specific situation.
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