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V2002-17 26 July 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo reducido

10% VAT rate for lift installations requires renovation or repair works with <40% new materials

An elevator company has enquired whether its installations or replacements qualify for the reduced VAT rate. The DGT indicates that these do not constitute rehabilitation works in themselves, but the 10% rate may apply if they are classified as renovation or repair works subject to certain requirements.

The question raised

The applicable tax rate for the operations subject to consultation, and whether the same may be considered residential rehabilitation works.

The DGT's ruling

The installation or renovation of elevators shall be taxed at 10% if they constitute renovation and repair works in buildings intended for residential use, with a natural person or a community of owners as the recipient, and provided that construction was completed at least two years ago. Furthermore, the cost of the materials supplied must not exceed 40% of the taxable base. If this limit is exceeded, the operation is considered a supply of goods and is taxed at 21%.

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