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A commercial property owner asked whether she could deduct VAT and expenses for renovation works carried out before leasing the property. The DGT states that VAT is deductible if the intention to start an economic activity is proven, and examines deductibility in personal income tax based on the nature of the works.
The ruling clarifies conditions under which VAT on pre-occupation renovation works can be deducted, particularly when the intention to start an economic activity is proven.
The tax team reviews your specific situation.
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