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V0474-20 ·27 February 2020 ·consulta-vinculante Medium impact
Tax

10% reduced VAT rate applies to renovation works if material costs do not exceed 40% of the taxable base

A renovation company has requested clarification on the VAT rate applicable to electrical, plumbing, masonry, and painting services. The DGT clarifies that, provided the works do not qualify as rehabilitation projects, they may be taxed at the 10% rate if the recipient is an individual or a community of owners and the cost of materials does not exceed 40% of the taxable base.

In 6 key points

How it affects those involved

This ruling provides legal certainty for renovation companies regarding the application of the reduced VAT rate, provided they strictly adhere to the material cost threshold and recipient criteria.

Lifecycle

2020-02-27PublishedPublished 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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