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V3063-21 ·7 December 2021 ·consulta-vinculante Medium impact
Tax

10% reduced VAT rate applies to construction works for self-builders

An individual acting as a self-builder to construct their primary residence has enquired about the VAT rate contractors should apply. The DGT has determined that, although the individual is not a business entity, the contractor is, and therefore may apply the 10% reduced rate.

In 6 key points

How it affects those involved

This ruling clarifies that the reduced VAT rate is applicable to construction services provided to individuals building their own homes, even if the client is not a professional developer.

Lifecycle

2021-12-07PublishedPublished 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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