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V0010-21 ·4 January 2021 ·consulta-vinculante Medium impact
Tax

The 21% standard rate applies to connections linking a building to general networks

A taxpayer inquired whether water and electricity connection works for their primary residence could be taxed at the reduced 10% rate. The DGT ruled that connecting a building to general supply networks does not constitute building construction, and therefore the standard rate must be applied.

In 6 key points

How it affects those involved

This ruling clarifies that utility connection works are subject to the standard VAT rate rather than the reduced rate for residential construction.

Lifecycle

2021-01-04PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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