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A construction company has enquired whether rehabilitating a property following a fire allows for the application of the 10% VAT rate instead of 21%. The DGT clarifies that the rate depends on whether the work qualifies as rehabilitation or renovation, as well as compliance with requirements regarding the recipient and the supply of materials.
This ruling clarifies the criteria for applying reduced VAT rates to property works, impacting how construction companies and homeowners calculate tax liabilities for post-damage repairs and renovations.
The tax team reviews your specific situation.
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