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A homeowners' association has requested clarification on the VAT rate applicable to refurbishment works on a complex comprising residential units, commercial premises, and garages. The Directorate General for Taxes (DGT) clarifies that a reduced rate of 10% applies if the requirements for refurbishment, renovation, or repair are met; otherwise, the standard rate of 21% shall apply.
This ruling clarifies the tax treatment for property improvements, potentially reducing costs for residential complexes that qualify for the reduced VAT rate during refurbishment projects.
The tax team reviews your specific situation.
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