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V2823-19 ·14 October 2019 ·consulta-vinculante Medium impact
Tax

Reduced 10% VAT rate for construction works and 21% for materials purchased by the self-developer

A taxpayer acting as a self-developer of a single-family home requested clarification on the applicable VAT rates for materials and services. The DGT ruled that construction services are subject to the reduced 10% rate if legal requirements are met, whereas materials purchased directly by the developer are subject to the standard 21% rate.

In 6 key points

How it affects those involved

This clarification distinguishes the VAT treatment between construction services and direct material procurement for self-developers, impacting cost calculations for residential projects.

Lifecycle

2019-10-14PublishedPublished 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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