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V0830-18 26 March 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo reducido

Elevator installation may be taxed at 10% if classified as renovation work and material costs remain within limits

A query was raised regarding the VAT rate applicable to the installation of an elevator in a home for persons with reduced mobility. The DGT indicates that while the elevator itself is subject to the 21% rate, the installation may qualify for the reduced 10% rate if it meets the requirements for renovation works and the cost of materials does not exceed 40% of the taxable base.

The question raised

Applicable Value Added Tax rate.

The DGT's ruling

The delivery including the installation of an industrialized elevator is taxed at 21%. However, the 10% rate may be applied if the installation is classified as renovation and repair work in dwellings, provided that the recipient is a natural person or a community of property owners, the dwelling is more than two years old, and the cost of materials does not exceed 40% of the taxable base. If this limit is exceeded, the entire operation shall be taxed at 21%.

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