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A construction company has requested clarification regarding the VAT rate applicable to extension works for a residential care home. The Directorate General for Taxes (DGT) has ruled that the 10% reduced rate may be applied if the building is intended for permanent residential use and more than 50% of its surface area is dedicated to that purpose.
This ruling clarifies the criteria for applying the reduced VAT rate to residential extensions, specifically focusing on the permanence of use and the proportion of the building's area required to qualify.
The tax team reviews your specific situation.
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