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A hospitality company inquired whether it could waive the VAT exemption when purchasing a property for tourist rentals. The DGT ruled that this is possible provided the acquirer is entitled to VAT deduction and the reverse charge mechanism is applied.
This ruling clarifies the ability of VAT-registered businesses to opt for taxation instead of exemption on property acquisitions, provided they can recover the tax through the reverse charge mechanism.
The tax team reviews your specific situation.
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