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V2445-24 ·4 December 2024 ·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 whether materials must be itemised on invoices and which VAT rate applies to the installation of awnings and blinds. The DGT has ruled that, if the works are classified as renovation and repair of residential properties, the 10% reduced rate applies provided that the cost of materials supplied does not exceed 40% of the taxable base.

In 6 key points

How it affects those involved

This ruling clarifies the application of the reduced VAT rate for renovation projects, establishing a specific threshold for material costs to qualify for the 10% rate.

Lifecycle

2024-12-04PublishedPublished 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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