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V0065-16 12 January 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo reducido

Reduced 4% VAT rate applies to the delivery of social housing by developers subject to certain requirements

A taxpayer has enquired about the VAT rate applicable to the purchase of social housing from a developer. The DGT has ruled that a 4% rate applies provided the requirements for official protection or the limits set by regional regulations are met.

The question raised

Applicable tax rate

The DGT's ruling

The delivery of dwellings by their developer shall be taxed at 4% VAT if they are special regime social housing or public promotion housing, or if they are regional public protection dwellings whose surface area, price, and income parameters do not exceed those of official social housing. In any other case, the applicable rate shall be 10%. The classification is determined according to the legislation in force at the time of the definitive qualification.

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