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A company inquired whether the transfer of renovated buildings could qualify for the reduced VAT rate for housing. The DGT ruled that if urban planning restrictions prevent changing the use from office to residential, the reduced rate cannot be applied.
This ruling clarifies that the eligibility for the reduced VAT rate on property transfers depends on the actual legal possibility of using the building as a residence, rather than just its physical state.
The tax team reviews your specific situation.
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