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A homeowners' association has enquired whether renewing the water network and resurfacing roads can qualify for the reduced 10% VAT rate. The Directorate-General for Taxes (DGT) has ruled that these works do not qualify for the reduced rate and must be taxed at the standard rate.
Homeowners' associations must apply the standard VAT rate of 21% to water supply infrastructure and road resurfacing works, as they do not meet the criteria for the reduced rate.
The tax team reviews your specific situation.
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