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V2506-20 22 July 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

Professional technical supervision subject to 21% VAT, while construction management may qualify for 10%

A technical architect seeks clarification on the VAT rates applicable to their professional services versus their construction management activities. The Directorate-General for Taxes (DGT) rules that professional fees are subject to 21% VAT, whereas construction management may qualify for the 10% reduced rate, provided specific requirements are met.

The question raised

Question posed: Value Added Tax rate applicable to the services provided by the applicant.

The DGT's ruling

Expert appraisal services, technical management, or technical advisory services are taxed at the general rate of 21%. Conversely, when acting as a construction manager by subcontracting personnel and materials, the reduced rate of 10% may be applied if the requirements for the execution of renovation or repair works in residential buildings are met. These requirements include that the recipient be a natural person for private use or a community of owners, that the building be at least two years old, and that the cost of materials does not exceed 40% of the taxable base.

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What is published here, applied to a company or a specific case. The first meeting is free.

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