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A company has requested clarification on whether floor polishing services provided to homeowners' associations qualify for the reduced 10% VAT rate. The Directorate General for Taxes (DGT) has ruled that this depends on whether the activity constitutes the execution of repair or renovation works, or if it is a periodic maintenance service.
This ruling clarifies the distinction between construction works and maintenance services for VAT purposes, affecting how contractors bill homeowners' associations.
The tax team reviews your specific situation.
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