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An installation company has enquired whether it must charge VAT to a mainland client for works carried out on properties located in the Canary Islands. The DGT has ruled that, as the properties are situated in the Canary Islands, the transaction is not subject to state VAT, although it does allow for the deduction of the tax incurred.
This ruling clarifies the tax treatment for services provided on real estate located in the Canary Islands, distinguishing between the non-applicability of state VAT and the right to deduct input VAT.
The tax team reviews your specific situation.
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