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A query was raised regarding whether replacing water pipes in a private residential development allows for the application of the reduced 10% VAT rate. The DGT has ruled that this is not applicable because the works are not carried out in buildings or parts of buildings intended for residential use.
This ruling clarifies that infrastructure works within residential developments, which are not directly part of a residential building, do not qualify for the reduced VAT rate and must be taxed at the standard rate.
The tax team reviews your specific situation.
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