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V2847-17 3 November 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

Road improvement works in residential developments subject to 21% VAT

A homeowners' association has requested clarification on the VAT rate applicable to the improvement of roads, facilities, and parking areas within a residential estate. The Directorate-General for Taxes (DGT) has ruled that these road improvement works are subject to the standard VAT rate of 21%.

The question raised

Applicable tax rate to the works subject to consultation.

The DGT's ruling

Renovation and repair works in buildings intended for residential use may be taxed at 10% if the recipient is a community of owners, the construction was completed more than two years ago, and the cost of materials does not exceed 40% of the taxable base. However, improvement works on the urbanization roads are taxed at the general rate of 21%.

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