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V2724-20 7 September 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo reducido

Supply and installation of kitchens by a subcontractor does not qualify for reduced VAT rate

A property developer has requested clarification on the VAT rate applicable to the supply and installation of kitchens carried out by a company subcontracted by the main contractor. The DGT has ruled that the 10% reduced rate does not apply in this subcontracting scenario.

The question raised

Type of Value Added Tax applicable to the supply and installation of kitchens by the entity subcontracted by the construction entity.

The DGT's ruling

The reduced rate of 10% for the sale with installation of kitchen cabinets only applies if the contract is formalized directly between the developer and the contractor. Therefore, the delivery of kitchens carried out by an entity subcontracted to the construction company cannot apply said reduced rate. Likewise, the reduced rate does not apply to household appliances nor to the delivery of cabinets without installation.

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