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A taxpayer has enquired whether the purchase of an urban building plot following a land repartition is subject to VAT or Transfer Tax. The DGT has ruled that the application of each tax depends on whether the seller is considered a business entity and whether urbanisation costs have been incurred.
This ruling clarifies the tax implications for land transactions involving repartition, highlighting the importance of the seller's professional status and the specific costs associated with urbanisation in determining the applicable tax regime.
The tax team reviews your specific situation.
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