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A company has requested clarification on the VAT rate applicable to comprehensive renovation works carried out to set up offices in its own building. The Directorate General for Taxes (DGT) has ruled that, although the works constitute renovation, the standard rate applies because the building is not primarily intended for residential use.
This ruling clarifies that the reduced VAT rate for building renovations cannot be applied to commercial or office spaces, even if the works are extensive, as the residential requirement is not met.
The tax team reviews your specific situation.
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