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A company seeking advice intends to transfer an urban plot containing a detached house that it did not develop. The DGT has ruled that the transfer of the building and the accessory land up to 5,000 m2 is exempt from VAT, but any excess land will be subject to the standard VAT rate.
This ruling clarifies the VAT treatment for the sale of residential properties with large plots, distinguishing between exempt accessory land and taxable excess land.
The tax team reviews your specific situation.
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