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A company has requested a ruling regarding the VAT liability and applicable rate for the sale of garages following the renovation of a commercial premises. The DGT indicates that the rate will depend on whether the works are classified as renovation and whether the parking spaces are sold in conjunction with dwellings.
This ruling clarifies the VAT implications for property developers and businesses converting commercial spaces into parking facilities, highlighting the importance of how these units are bundled with residential properties to determine the tax rate.
The tax team reviews your specific situation.
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