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V0214-20 31 January 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · rehabilitación de edificaciones

VAT on roof repairs: 10% or 21% rate depending on whether rehabilitation or repair requirements are met

A community of property has requested clarification on the VAT rate applicable to the repair of an old residential roof, contracted with a company that provides materials. The DGT explains that the rate depends on whether the work qualifies as rehabilitation or as renovation and repair under specific conditions.

The question raised

Value Added Tax rate applicable to the execution of roof repair work.

The DGT's ruling

The 10% rate shall apply if the work is a rehabilitation and the cost exceeds 25% of the value of the building (excluding the land). The 10% rate also applies if it is renovation or repair work in buildings intended for residential use, provided that the recipient is a natural person or a community of owners, the construction was completed at least two years ago, and the cost of materials does not exceed 40% of the taxable base. Otherwise, the general rate of 21% shall apply.

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