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A query was raised regarding whether the acquisition of a building via auction from a public entity, intended for demolition to allow for new construction, is subject to VAT. The DGT indicates that the transaction is subject to VAT if the transferor is a businessperson or professional acting in the course of their activity; however, the exemption for second-hand buildings cannot be applied as the property is intended for demolition.
The tax team reviews your specific situation.
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