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An individual requests improvements to a property that has not yet been handed over. The DGT rules that if the developer carries out these works and they are considered an increase in the sale price, the 10% rate applies; however, if the builder invoices the buyer directly, the 21% rate applies.
This ruling clarifies the VAT treatment for property improvements during the construction phase, distinguishing between works integrated into the sale price and those billed separately by contractors.
The tax team reviews your specific situation.
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