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A company has requested clarification on whether seasonal residential rentals including cleaning, concierge, and reception services are exempt from VAT. The DGT has ruled that, as these involve services characteristic of the hotel industry, the transaction does not qualify for the housing exemption and is subject to the reduced VAT rate.
This ruling clarifies that providing additional hospitality services transforms a standard residential lease into a service subject to VAT, affecting the tax treatment for seasonal rental operators.
The tax team reviews your specific situation.
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