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A company has requested a ruling regarding the VAT and ITP/AJD taxation on the acquisition of land, its urbanisation, construction, and subsequent horizontal division. The DGT has determined that supplies of goods by developers are subject to VAT and that certain registry acts are taxed at the variable rate of ITP/AJD.
This ruling clarifies the tax treatment for developers involved in land exchange and property development, specifically regarding VAT applicability and the calculation of ITP/AJD on property division.
The tax team reviews your specific situation.
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