In principle it is exempt from VAT but if the letting is for the purposes of accommodation, under certain conditions, then it is treated as a taxable supply at a reduced rate of 7%. The letting of property by a limited liability company to an Article 10 VAT registered person for the purpose of the economic activity of the latter is also treated as a taxable supply but at the standard rate of 18%. Certain types of letting of property for not more than thirty days by a taxable person in the course of an economic activity, such as a the letting of a wedding reception venue, is also treated as a taxable supply of letting at the standard rate of 18%.
Source Zampa Debattista
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