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V4614-16 ·31 October 2016 ·consulta-vinculante Medium impact
Tax

Quality improvements made by developers in undelivered properties subject to 10% VAT

A couple requested improvement works and door replacements in a property prior to handover. The DGT has ruled that if the developer carries out these works, the cost is considered part of the property price and is subject to the 10% VAT rate.

In 6 key points

How it affects those involved

This ruling clarifies the VAT treatment for bespoke improvements requested by buyers before the final delivery of a property, confirming they are integrated into the main sale price.

Lifecycle

2016-10-31PublishedPublished 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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