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A company requested clarification on whether water supply, fibre optic, and paving works in an urbanisation could qualify for the reduced 10% VAT rate. The DGT ruled that this is not applicable, as such works are not carried out on buildings or parts thereof intended for residential use.
Companies undertaking infrastructure works in urbanisations must apply the standard VAT rate of 21% rather than the reduced rate, as these works do not qualify as residential building improvements.
The tax team reviews your specific situation.
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