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V2211-17 4 September 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · ejecución de obra

Periodic elevator maintenance taxed at 21%, while non-periodic repairs may qualify for 10%

The inquiry asks whether the maintenance and repair of elevators for homeowners' associations can benefit from the reduced 10% VAT rate. The DGT rules that periodic maintenance is a continuous service subject to 21% VAT, whereas non-periodic repairs may qualify for the 10% rate if they are classified as works and meet all legal requirements.

The question raised

Applicable tax rate for the specified repair and maintenance services carried out for homeowners' associations and, in particular, whether the reduced rate under Article 91.One.2.10º of Law 37/1992 is applicable to them.

The DGT's ruling

The periodic maintenance of elevators and automatic doors constitutes a provision of services and not a construction project, and therefore is taxed at 21%. Non-periodic repairs involving a substantial modification or the fixing of elements may be taxed at 10% if they constitute construction projects for renovation or repair. To apply the reduced rate, the cost of materials provided must not exceed 40% of the taxable base, and the recipient must be a homeowners' association or a natural person using the dwelling for private use.

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