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V2264-17 8 September 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo reducido

Renovation works in common areas may be taxed at 10% if repair requirements are met and material limits are not exceeded

A homeowners' association has requested clarification on the VAT rate applicable to maintenance and renovation works in common areas (planters, swimming pools, and dampness issues). The DGT clarifies that such works may be taxed at the reduced rate of 10% if they are classified as renovation and repair under certain limits; however, works involving swimming pools are always subject to the standard rate.

The question raised

Applicable tax rate for said works.

The DGT's ruling

Renovation and repair works in buildings intended for residential use may be taxed at 10% if the recipient is a community of owners, the construction was completed more than two years ago, and the cost of the materials supplied does not exceed 40% of the taxable base. If the cost of the materials exceeds this limit, the operation is considered a supply of goods and is taxed at 21%. However, construction, renovation, or repair works on swimming pools are always taxed at the general rate of 21%.

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