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A taxpayer inquired whether an undivided share of a common service premises could be taxed at the 10% VAT rate as part of a residential property purchase. The DGT ruled that business premises are not considered annexes to a dwelling and must be taxed at the standard rate.
This ruling clarifies that business premises cannot benefit from reduced VAT rates even when sold alongside residential property, as they are not classified as residential annexes.
The tax team reviews your specific situation.
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