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V2970-20 2 October 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · segunda entrega de edificaciones

VAT rate determined by residential suitability and taxable base by market value of each part

A company requested clarification on the applicable VAT rate and how to calculate the taxable base when selling a property without horizontal division that contains both dwellings and commercial premises. The DGT clarifies that the reduced rate applies to parts suitable for residential use and that the taxable base must be apportioned according to the market value of each element.

The question raised

The type of Value Added Tax applicable to said delivery. The method for determining the tax base for said tax. For these purposes, the inquiry proposes determining the portion of the tax base taxed at the reduced and general rates based on the square meters allocated to dwellings and commercial premises relative to the property's totals.

The DGT's ruling

The parts of the property with a certificate of habitability or a first occupancy license are taxed at 10% as they are suitable for residential use, regardless of their subsequent use. The tax base for each part (dwellings and commercial premises) must be determined in proportion to its market value and not by square meters. If the exemption for the second delivery is waived, the taxpayer's investment method shall apply.

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