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V0466-20 26 February 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · autopromotor

10% reduced VAT rate applies to kitchen installation if contracted directly with the developer

An individual self-developing a property has enquired about the applicable VAT rate for kitchen installation. The DGT has ruled that the 10% rate applies provided there is a direct contract between the developer and the contractor for the construction or renovation of the dwelling.

The question raised

Type of Value Added Tax applicable to said operation.

The DGT's ruling

The reduced rate of 10% applies to works execution and the sale with installation of kitchen cabinets when direct contracts are formalized between the developer and the contractor for buildings intended primarily for housing. The status of developer depends on the intention to sell, transfer, or allocate the property. However, delivery with the installation of household appliances shall always be taxed at the general rate of 21%.

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