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V2468-17 3 October 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo reducido

10% VAT rate applies to roof repairs if material costs do not exceed 40%

A company has requested clarification on the VAT rate applicable to roof repairs for a residential building's homeowners' association. The DGT has ruled that, provided the works do not constitute rehabilitation, they may be taxed at the reduced rate of 10% if they are classified as renovation and repair works and the cost of materials does not exceed 40% of the taxable base.

The question raised

Applicable tax rate for said works.

The DGT's ruling

Roof repair works may be taxed at the reduced rate of 10% if they are renovation and repair works intended for a community of owners. To this end, the construction must have been completed at least two years prior and the cost of the materials supplied must not exceed 40% of the taxable base. If the cost of the materials exceeds said limit, the transaction is classified as a supply of goods and is taxed at the general rate of 21%.

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