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V1333-17 31 May 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

Paving works for an urban development road are subject to 21% VAT

A company has requested clarification on the VAT rate applicable to paving works on a road within a residential development owned by a homeowners' association. The Directorate General for Taxes (DGT) has ruled that the standard rate of 21% applies, as these works do not constitute construction on buildings intended for residential use.

The question raised

Type of tax applicable to the aforementioned works.

The DGT's ruling

Paving works on an urbanization road do not meet the requirement of being construction works on buildings or parts thereof intended for housing. Therefore, the application of the reduced rate of 10% provided for in Article 91.One.2.10º of Law 37/1992 is not applicable. Consequently, these operations are taxed at the general rate of 21%.

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