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A local council requested clarification on the VAT rate applicable to construction and demolition waste treatment services contracted following construction works. The Directorate-General for Taxes (DGT) ruled that these services are subject to the 10% reduced rate if they involve the collection, transport, recovery, or disposal of substances classified as waste.
This ruling clarifies the tax treatment for waste management providers and local authorities, confirming the application of the reduced VAT rate for specific waste handling activities related to construction and demolition.
The tax team reviews your specific situation.
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