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A City Council has requested clarification regarding the applicable VAT rate and the taxable person in the contract for the construction of a building comprising residential units and commercial premises. The DGT has determined that the 10% reduced rate applies and that the City Council is the taxable person under the reverse charge mechanism.
This ruling clarifies the application of the reduced VAT rate and the reverse charge mechanism for public entities involved in construction projects involving residential and commercial spaces.
The tax team reviews your specific situation.
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