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A company specialising in property leasing has enquired whether it can apply the 10% VAT rate to works carried out on its properties. The DGT has ruled that if the works qualify as renovation, the reduced rate applies even if requested by the tenant, as the company is the actual recipient and developer.
This ruling provides legal certainty for property management companies, confirming they can benefit from the reduced VAT rate on renovation works, provided they act as the developer, regardless of whether the tenant initiates the request.
The tax team reviews your specific situation.
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