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V2378-18 27 August 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · ejecución de obra

Periodic maintenance of automatic doors taxed at 21%, while repairs at 10% if requirements are met

A company sought clarification on whether maintenance of garage doors for homeowners' associations could qualify for the reduced 10% VAT rate. The DGT ruled that periodic maintenance is a continuous service subject to the 21% rate, whereas one-off repairs may be taxed at 10% if they are classified as works executions.

The question raised

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

The DGT's ruling

The periodic maintenance of automatic doors is a continuous provision of services and not a construction work, therefore it is taxed at 21%. Non-periodic repairs or renovations may apply the reduced rate of 10% if they constitute construction work, the recipient is a community of homeowners, and the cost of materials does not exceed 40% of the taxable base. If the cost of the incorporated materials exceeds that limit, the entire operation shall be taxed at the general rate of 21%.

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