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An individual enquired whether, when hiring multiple companies for home renovations, each company must separately determine if it meets the requirements to apply the reduced VAT rate. The Directorate-General for Taxes (DGT) responded that, as these are independent works contracted directly, each contractor must autonomously verify compliance with the legal requirements.
This ruling clarifies the responsibility of individual contractors to assess VAT eligibility for each specific contract, preventing the assumption that a single assessment covers all parties involved in a renovation project.
The tax team reviews your specific situation.
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