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An individual inquired whether they must pay the VAT difference when a renovation company issues new invoices applying the standard rate instead of the reduced rate. The DGT ruled that the company cannot pass this increase on to the customer, as it does not stem from a legal increase in tax rates or changes to the taxable base.
Businesses cannot recover VAT shortfalls caused by their own errors in applying the incorrect tax rate by charging the difference to the customer.
The tax team reviews your specific situation.
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