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V0564-17 2 March 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

Reduced 10% VAT rate applies to kitchen installation and accessories

A kitchen design and installation company requested clarification on the VAT rate applicable to design projects, the sale and installation of wardrobes, and bespoke parts. The Directorate General for Taxes (DGT) ruled that these operations are subject to the 10% reduced rate if carried out under a direct contract with the property developer.

The question raised

Tax rate applicable to the technical kitchen design project, which is directly linked to its installation. Tax rate applicable to the sale with installation of kitchen cabinets. Tax rate applicable to the sale of parts such as drawers or trays that are incorporated into these cabinets and can only be used in them, as they are custom designed.

The DGT's ruling

The reduced rate of 10% applies to works executions and sales with the installation of kitchen cabinets when contracted directly with the developer, including individuals in self-promotion. The technical kitchen design project is an ancillary service taxed at the same rate as the principal service. Components such as drawers or trays are taxed at 10% if they form part of the furniture installation, but not if they are delivered subsequently. Appliances are taxed at the general rate of 21%.

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