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A property developer has requested clarification regarding the VAT treatment when acquiring an office building to convert it into residential units and storage rooms. The DGT explains that if the works meet the requirements for renovation, the purchase is not exempt, and the subsequent sales will constitute the first supply subject to the reduced rate.
This ruling clarifies the VAT implications for developers undertaking renovation projects, specifically regarding the transition from acquisition to the first supply at a reduced rate.
The tax team reviews your specific situation.
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