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A construction company has requested a ruling on whether the construction of a chapel within a convent used as a religious residence qualifies for the reduced VAT rate. The Directorate-General for Taxes (DGT) has ruled that the work must be taxed at 21%, as the construction of the chapel does not meet the requirements for a building primarily intended for residential purposes.
This ruling clarifies that religious structures, even when located within residential religious complexes, do not qualify for reduced VAT rates if their primary purpose is not housing.
The tax team reviews your specific situation.
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