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A religious community has requested clarification on the VAT rate applicable to extension works on their monastery. The Directorate General for Taxes (DGT) has ruled that the 10% reduced rate may be applied if the building is primarily intended for residential use and meets the necessary construction or renovation requirements.
This ruling provides tax certainty for religious organisations undertaking building extensions, allowing them to benefit from a lower VAT rate provided the premises are used for housing.
The tax team reviews your specific situation.
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