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V1450-14 30 May 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo reducido

Pest control in dwellings is subject to 21% VAT unless it includes repair or replacement works

A pest control company has enquired whether its services qualify for the reduced VAT rate. The DGT has ruled that simple treatment with biocides is subject to 21% VAT; however, if the activity includes the repair or replacement of structural elements, the 10% rate may apply provided the requirements for renovation works are met.

The question raised

Applicable tax rate for the execution of said activities and whether they can be considered renovation and repair works for dwellings.

The DGT's ruling

The treatment of wood with biocides or pest control is not an execution of renovation or repair works, and therefore is taxed at 21%. If the activity includes the treatment, conservation, disassembly, repair, or replacement of structural elements such as beams or frames, the 10% rate shall apply provided that the requirements of article 91.one.2.10º of Law 37/1992 are met. To this end, the recipient must be a natural person or a community of owners, the dwelling must be more than two years old, and the cost of the materials provided must not exceed 40% of the taxable base.

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