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A development entity has enquired whether the repair of streets, pavements, and networks within a residential development can benefit from reduced VAT rates. The Directorate-General for Taxes (DGT) has ruled that, as these are external works that do not form part of residential buildings, the standard rate applies.
This ruling clarifies that maintenance and repair works on infrastructure within urban developments, which are not integrated into the buildings themselves, are subject to the standard VAT rate rather than reduced rates.
The tax team reviews your specific situation.
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