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A kitchen furniture company requested clarification on the VAT rate applicable to the installation of furniture in housing cooperative units when contracting directly with the member. The Directorate-General for Taxes (DGT) ruled that since the member is not the developer, the reduced VAT rate cannot be applied.
Companies providing furniture to housing cooperatives must ensure they apply the standard 21% VAT rate if the contract is signed directly with the individual member instead of the developer, as the reduced rate is not applicable in this scenario.
The tax team reviews your specific situation.
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