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A construction materials trading company has requested clarification on the VAT rate applicable to sales made to developers or self-developers. The Directorate-General for Taxes (DGT) has ruled that, as these transactions do not constitute the execution of works, the sale of materials must be taxed at the standard rate.
This ruling clarifies that developers purchasing materials directly cannot benefit from reduced VAT rates applicable to construction services, as the transaction is classified as a supply of goods rather than a works contract.
The tax team reviews your specific situation.
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