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V1464-22 21 June 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo reducido

VAT on clotheslines supplied after the property purchase is taxed at 21%

An individual enquired whether the subsequent purchase of clotheslines, following the acquisition of a property and its annexes, could qualify for the reduced 10% VAT rate. The Directorate General for Taxes (DGT) ruled that, as the supply is not made jointly and simultaneously with the property, the standard 21% rate applies.

The question raised

Application of the reduced VAT rate to the acquisition of drying racks.

The DGT's ruling

The reduced rate of 10% applies to the supply of annexes (such as storage rooms or garages) when they are transferred jointly and simultaneously with a dwelling. For a joint transfer to exist, the transaction must be carried out in the same act. Since the drying racks were not transferred together with the dwelling, their subsequent delivery is not considered ancillary and is taxed at the general rate of 21%.

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