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The DGT confirms that the reduced 10% VAT rate applies only if the garage is located on the same plot or development as the main property.
Question raised Questioned is the application of the 10 percent tax rate for Value Added Tax purposes.
Storage rooms transferred jointly with a dwelling are taxed at the reduced rate of 10% provided they belong to the same plot or real estate complex as the residential building. If the storage room is located in a different building or does not meet the requirement of being on the same plot, the transfer of the dwelling will maintain the 10% rate, but the storage room will be taxed at the general rate of 21%.
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