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A company has requested clarification regarding the VAT treatment of a property transfer. The DGT has ruled that if the property is intended for demolition to make way for a new development, the transaction is subject to the standard 21% rate and does not qualify for the exemption applicable to second and subsequent transfers.
This ruling clarifies that property transfers intended for redevelopment through demolition do not benefit from the VAT exemption for subsequent sales, meaning developers must account for the standard VAT rate.
The tax team reviews your specific situation.
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