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A taxpayer acting as a self-developer of a single-family home requested clarification on the applicable VAT rates for materials and services. The DGT ruled that construction services are subject to the reduced 10% rate if legal requirements are met, whereas materials purchased directly by the developer are subject to the standard 21% rate.
This clarification distinguishes the VAT treatment between construction services and direct material procurement for self-developers, impacting cost calculations for residential projects.
The tax team reviews your specific situation.
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