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A buyer requests improvements (an awning) to a property under construction before taking possession. The DGT has ruled that if these works are agreed with the developer, they are subject to 10% VAT as part of the sale price; however, if contracted directly with a builder or after handover, the 21% rate applies.
This ruling clarifies the VAT treatment for property enhancements, distinguishing between those integrated into the purchase price and those treated as separate services.
The tax team reviews your specific situation.
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