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A non-profit association has requested clarification on the VAT rate applicable to renovation works intended to expand a cognitive stimulation centre. The Directorate-General for Taxes (DGT) has ruled that, as the building is not primarily intended for residential use, the standard rate of 21% applies.
This ruling clarifies that renovation works on non-residential buildings, even those used for social or cognitive purposes, do not qualify for reduced VAT rates.
The tax team reviews your specific situation.
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