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A company sought clarification on whether repairing paving, pavements and replacing lighting in a residential development could qualify for the reduced VAT rate. The DGT has determined that these works do not constitute buildings or residential annexes, and therefore the standard rate applies.
This ruling clarifies that maintenance and repair works on common urbanisation elements, such as streets and lighting, are subject to the standard VAT rate rather than the reduced rate, as they are not considered part of the residential buildings themselves.
The tax team reviews your specific situation.
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