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V0085-22 19 January 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

The reduced rate of 10% applies to housing renovation and the installation of kitchen furniture, subject to certain requirements

An individual inquires which VAT rate should be applied to the renovation of a dwelling and the assembly of kitchen furniture. The DGT responds that the 10% rate applies if the requirements for renovation works are met and the contract is directly between the developer and the contractor.

The question raised

Question posed: The tax rate applicable for Value Added Tax purposes in the aforementioned execution of works and, specifically, in the assembly and installation of kitchen furniture.

The DGT's ruling

Housing renovation works are taxed at 10% if the legal requirements for reconstruction and cost are met. This reduced rate includes the installation of kitchen and bathroom cabinets when a direct contract is formalized between the developer and the contractor. However, the delivery of household appliances remains subject to the general rate of 21%.

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