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A query was raised regarding whether renting a rural tourism house, consisting solely of the handover of keys, constitutes an economic activity or a hospitality service. The DGT ruled that, as no cleaning or catering services are provided and no staff are employed, it is classified as income from real estate capital for Personal Income Tax purposes and is exempt from VAT.
This ruling clarifies the tax distinction between property rental and hospitality services, ensuring that simple property leases are not misclassified as business activities subject to VAT.
The tax team reviews your specific situation.
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