Skip to content
Back to index
V2024-17 26 July 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

10% VAT rate on kitchen renovations depends on material costs not exceeding 40% of the taxable base

A renovation company has enquired whether the installation of kitchen units, appliances, awnings, and rails can be taxed at the reduced rate of 10%. The Directorate General for Taxes (DGT) has ruled that such works may qualify for the 10% rate only if they meet the requirements for residential renovation and if the cost of materials supplied does not exceed 40% of the taxable base.

The question raised

Whether the reduced rate of 10 percent is applicable to kitchen renovation works involving the installation of furniture, to the installation of appliances integrated into said kitchen furniture, as well as to the installation of awnings and curtain rails, which in all cases remain attached to the building.

The DGT's ruling

Kitchen furniture installations, awnings, or rails are considered renovation and repair if carried out in dwellings more than two years old and the recipient is an individual or a community of owners. If the cost of the incorporated materials (including furniture and countertops) exceeds 40% of the taxable base, the operation is classified as a supply of goods and taxed at 21%. Appliances are always taxed at the general rate of 21%, even if they are installed alongside works that do qualify for the reduced rate.

Free assessment and quote