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A social action entity has requested clarification regarding the VAT rate applicable to renovation works in its residence for people with disabilities. The Directorate General for Taxes (DGT) states that the reduced rate of 10% will apply if the works involve the construction or renovation of buildings primarily intended for residential use and meet certain technical and quantitative requirements.
This ruling provides legal certainty for social organisations and developers regarding the application of reduced VAT rates on residential renovation projects, provided they meet the specific criteria for residential buildings.
The tax team reviews your specific situation.
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