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A manager of non-hotel tourist accommodation queried whether a six-month residential lease including complementary services (cleaning, breakfast, etc.) qualifies for the 10% reduced rate. The DGT ruled that because the operation provides services characteristic of the hotel industry, it is subject to VAT rather than exempt, and therefore the reduced rate applies.
This ruling clarifies the tax treatment for short-term residential rentals that include hospitality services, confirming they qualify for the reduced VAT rate instead of being exempt.
The tax team reviews your specific situation.
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