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A query was raised regarding whether the rental of a rural house including cleaning services, linen changes, and breakfasts is exempt from VAT. The DGT has determined that, as it provides complementary services characteristic of the hotel industry, the activity does not constitute an exempt residential lease, but rather a hospitality service subject to tax.
This ruling clarifies that providing additional services such as cleaning and meals transforms a residential rental into a taxable hospitality service, affecting the VAT treatment for rural tourism providers.
The tax team reviews your specific situation.
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