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V0134-18 25 January 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

The 21% standard VAT rate applies to repair works in garages that are not ancillary to residential buildings

A community of garage users has requested clarification on the VAT rate applicable to repair works on their facilities. The DGT has determined that, as these garages are not ancillary to buildings primarily intended for residential use, they must be taxed at the standard rate.

The question raised

The type of Value Added Tax applicable to the execution of works for the repair of the garages subject to this consultation.

The DGT's ruling

Repair works in garages that are not complementary to buildings primarily intended for residential use (at least 50% of the surface area) are taxed at 21%. The reduced rate of 10% is not applicable because the garages are considered isolated real estate and do not form part of buildings intended for residential use. The reduced rate for renovation and repair also does not apply as it does not involve a building or part of one intended for residential use.

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