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A query was made regarding the VAT rate applicable to renovation works in a parish centre. The Directorate General for Taxes (DGT) ruled that the 10% reduced rate only applies if the building is primarily intended for residential purposes, requiring at least 50% of the built area to be used for such purposes.
This ruling clarifies the criteria for applying the reduced VAT rate to renovation projects, emphasizing the importance of the building's primary use and the specific threshold for residential floor space.
The tax team reviews your specific situation.
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