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An automatic door installation company has requested clarification on the applicable VAT rate for its services. The DGT has ruled that if the works are classified as renovation or repair in residential properties or homeowners' associations, a 10% rate applies, provided that the cost of materials does not exceed 40% of the taxable base.
This ruling clarifies the application of the reduced VAT rate for construction and maintenance services in the residential sector, specifically regarding the threshold for material costs.
The tax team reviews your specific situation.
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