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V1926-23 5 July 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · ejecución de obras

Window installation may qualify for 10% VAT if renovation and repair requirements are met

A taxpayer queried whether the supply and installation of windows could qualify for the reduced VAT rate. The DGT ruled that window installation alone does not constitute rehabilitation work, but it may qualify as renovation or repair work subject to the 10% rate, provided specific requirements are satisfied.

The question raised

To determine whether the reduced rate of Value Added Tax may be applied to the delivery of windows.

The DGT's ruling

The installation of windows may qualify for the reduced rate of 10% if it is classified as the execution of renovation and repair works in buildings intended for residential use. To this end, the recipient must be a natural person (or a community of property owners) using the dwelling for private use, and the construction or rehabilitation must have been completed at least two years prior. Furthermore, the cost of the materials supplied must not exceed 40% of the taxable base of the transaction. If this material limit is exceeded, the general rate of 21% shall apply to the entirety of the works.

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