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V2654-20 14 August 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

Repair works on streets, pavements and street lighting in residential developments subject to 21% VAT

A company sought clarification on whether repairing paving, pavements and replacing lighting in a residential development could qualify for the reduced VAT rate. The DGT has determined that these works do not constitute buildings or residential annexes, and therefore the standard rate applies.

The question raised

Applicable tax rate for the works described in the Value Added Tax.

The DGT's ruling

Exterior repair works, such as streets, sidewalks, curbs, and streetlights, do not meet the requirements for the reduced rate of 10%. These actions are not considered buildings nor do they form part of residential buildings or their annexes. Therefore, the execution of works for a homeowners' association regarding these elements is taxed at 21%.

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