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A bespoke manufacturing company has requested clarification on the applicable VAT rate for its products. The DGT has ruled that the general regime applies with a 21% rate, unless the tapestries qualify as works of art.
Businesses manufacturing decorative textiles must carefully assess whether their products meet the legal criteria for 'works of art' to benefit from the reduced VAT rate, otherwise the standard rate applies.
The tax team reviews your specific situation.
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