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A construction company has requested clarification on the VAT rate applicable to the renovation of a private residence involving subcontractors. The Directorate General for Taxes (DGT) clarifies that the 10% rate depends on whether the works qualify as rehabilitation or renovation, and on the identity of the contractor.
This ruling clarifies the criteria for applying the reduced VAT rate in residential construction projects, specifically distinguishing between rehabilitation and renovation works and the implications of subcontracting.
The tax team reviews your specific situation.
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