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V0528-16 9 February 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · ejecución de obra

The 10% VAT rate applies to new floor construction and rehabilitation or renovation works

The taxpayer inquired about the VAT rate applicable to a residential extension involving an additional floor, as well as works for adaptation and redistribution. The DGT ruled that the construction of the new floor is subject to 10% VAT, and that other works may also qualify for the 10% rate if they meet the specific requirements for rehabilitation or renovation.

The question raised

Applicable rate for the specified works.

The DGT's ruling

The construction of a new floor to increase the useful area of a dwelling is taxed at a 10% VAT rate. Renovation works may be taxed at 10% if they constitute rehabilitation (meeting qualitative reconstruction requirements and quantitative requirements of a cost exceeding 25% of the value of the property excluding land) or if they constitute renewal and repair (intended for private use, with the dwelling completed more than two years ago and using materials that do not exceed 40% of the taxable base).

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