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V0063-16 12 January 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

21% VAT rate applies to forest track repairs and fire prevention systems

An entity sought clarification on whether forest track repairs and the construction of fire prevention systems for a Regional Ministry of Agriculture could qualify for the reduced VAT rate. The Directorate General for Taxes (DGT) ruled that these works must be taxed at the general rate of 21%, as they are not included in the list of services eligible for the reduced rate.

The question raised

Applicable tax rate.

The DGT's ruling

Repair and maintenance services for forest roads and the construction of fire prevention systems are taxed at 21% as they are not included in Article 91.Uno.2.3º of Law 37/1992. To apply the reduced rate of 10% for agricultural, forestry, or livestock services, the provision must be expressly listed in the regulation, be performed for a holder of an agricultural or forestry holding, and be necessary for its development.

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