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A religious entity has requested clarification on the VAT rate applicable to renovation works in a convent where more than 50% of the floor area is used for residential purposes. The Directorate-General for Taxes (DGT) has ruled that the 10% reduced rate may be applied, provided the requirements for renovation works are met.
This ruling provides tax certainty for religious organisations undertaking renovation projects in buildings that serve a dual purpose, ensuring that residential-focused renovations qualify for the lower VAT rate.
The tax team reviews your specific situation.
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