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A company has requested clarification on the VAT rate applicable to paving works on a road within a residential development owned by a homeowners' association. The Directorate General for Taxes (DGT) has ruled that the standard rate of 21% applies, as these works do not constitute construction on buildings intended for residential use.
This ruling clarifies that infrastructure works within residential developments, such as road paving, do not qualify for reduced VAT rates, as they are not directly part of the construction of residential buildings.
The tax team reviews your specific situation.
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