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V1150-17 16 May 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo reducido

10% reduced VAT rate applies to home repairs if the recipient is the insured party

A repairer sought clarification on the applicable VAT rate when an invoice is issued to the insured party, but payment is made by the insurance company via reimbursement. The DGT ruled that the 10% rate may be applied if the actual recipient is the insured party or the homeowners' association, provided all legal requirements are met.

The question raised

Tax rate applicable to repairs in private dwellings when the invoice is issued to the insured party and payment is made via reimbursement by the insurer.

The DGT's ruling

The reduced rate of 10% is applicable if the legal and material recipient of the service is the natural person or the community of owners using the dwelling. In cases of reimbursement via indemnity, the insured party must contract the repair (by accepting a quote or service order) and the invoice must be issued in their name. The reduced rate shall not apply if the claims management platform is obligated to the insurer to guarantee repairs or prices, as the recipient would be the insurer.

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