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A cooperative offering accommodation and resort-style activities for the elderly has requested clarification on whether its services are VAT exempt. The Directorate General for Taxes (DGT) has ruled that neither the exemption for hotel services nor the exemption for social assistance applies; however, the reduced VAT rate for accommodation and catering services is applicable.
This ruling clarifies the VAT treatment for cooperatives providing residential services for seniors, confirming that while they do not qualify for full exemptions, they are entitled to the reduced VAT rate for their core hospitality services.
The tax team reviews your specific situation.
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