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A real estate company has requested clarification on the applicable VAT rate when leasing properties to owners who provide cleaning and linen change services, only to subsequently sublet them to tourists. The DGT has determined that, because cleaning and laundry services are provided on a periodic basis, the operation is classified as a hotel industry service and is therefore subject to VAT.
This ruling clarifies that the provision of periodic cleaning and laundry services transforms a standard residential lease into a service subject to VAT, rather than an exempt residential rental.
The tax team reviews your specific situation.
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