Skip to content
Back to index
V3162-19 13 November 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

10% reduced VAT rate applies to window installation if material costs do not exceed 40% of the taxable base

A window manufacturing and installation company has enquired whether it can apply the reduced VAT rate to its renovation services. The DGT has ruled that this is possible provided that the cost of materials supplied does not exceed 40% of the taxable base and other housing requirements are met.

The question raised

Application of the reduced rate provided for in Article 91.One.2.10º of the Value Added Tax Law to the described operations.

The DGT's ruling

The installation of windows is considered renovation and repair at the 10% rate if the recipient is an individual or a community of property owners, the dwelling is more than two years old, and the cost of the materials provided does not exceed 40% of the taxable base. If the cost of the materials exceeds said limit, the entire operation shall be taxed at the general rate of 21%. In the case of manufacturers, the cost of the materials shall be their production cost. The delivery of windows without installation shall always be taxed at the general rate of 21%.

Book your free first meeting