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V3046-23 ·23 November 2023 ·consulta-vinculante Medium impact
Tax

The 10% reduced rate for home renovation works applies if material costs do not exceed 40%

A renovation company has enquired how to calculate material costs when services are subcontracted and invoices do not separate labour from materials. The Directorate-General for Taxes (DGT) has ruled that the 40% limit is calculated based on the acquisition or production cost of all necessary materials, including those provided by subcontractors.

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2023-11-23PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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