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V0658-18 13 March 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

VAT rate for lift installations to be 10% or 21% depending on material costs and recipient

An elevator installation company has requested clarification on the applicable VAT rate. The DGT has indicated that the standard rate of 21% will apply by default; however, the reduced rate of 10% may be applicable if the installation is classified as renovation or repair work in residential properties, subject to specific requirements.

The question raised

Applicable tax rate.

The DGT's ruling

The installation of elevators shall be taxed at 21% unless the requirements for renovation or repair works in dwellings are met (Art. 91.Uno.2.10º Law 37/1992). To apply the 10% rate, the recipient must be a natural person or a community of property owners, the dwelling must be at least two years old, and the cost of the materials supplied must not exceed 40% of the tax base. If this limit is exceeded, the entire operation shall be taxed at 21%.

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