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V2882-20 23 September 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo reducido

Reduced 10% VAT rate applies to public road cleaning in industrial estates

A company requested clarification on whether cleaning public roads within an industrial estate for a homeowners' association qualifies for the reduced VAT rate. The Directorate-General for Taxes (DGT) confirmed that the 10% rate is applicable.

The question raised

Possibility of applying the reduced tax rate provided for in Article 91, paragraph one.2, number 4 of the Value Added Tax Law to the described services.

The DGT's ruling

Cleaning services for public roads, parks, and public gardens are taxed at the reduced rate of 10% pursuant to Article 91.1.2.4 of the VAT Law. This rate applies to the cleaning of public roads in an industrial estate, regardless of whether the recipient is a community of property owners.

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