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A real estate developer has requested clarification regarding the taxation of properties that, due to the impossibility of sale, are reassigned to rental without an option to buy. The Directorate General for Taxes (DGT) has ruled that this change in activity constitutes a self-supply of goods subject to VAT.
Real estate developers must account for VAT when reclassifying inventory intended for sale into assets intended for rental, as this change in use triggers a self-supply event.
The tax team reviews your specific situation.
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