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A company has requested clarification on the VAT rate applicable to a comprehensive home renovation that includes furniture and appliances. The DGT clarifies that the reduced 10% rate depends on whether the work constitutes rehabilitation or renovation and repair, provided that material limits and direct contracting requirements are met.
This ruling clarifies the distinction between rehabilitation and renovation works, affecting how VAT is applied to construction and renovation contracts involving materials.
The tax team reviews your specific situation.
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