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V3217-19 22 November 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · autopromotor

10% reduced VAT rate applies to kitchen installations when contracted directly with the developer

An individual acting as a self-developer of a property has requested clarification on the VAT rate applicable to kitchen installations. The Directorate-General for Tax (DGT) has ruled that the 10% reduced rate applies if there is a direct contract between the developer and the contractor for the construction or renovation of dwellings.

The question raised

Type of Value Added Tax applicable to said operation.

The DGT's ruling

The reduced rate of 10% applies to the execution of works and to the sale with installation of kitchen cabinets when direct contracts are formalized between the developer and the contractor for buildings intended primarily for residential use. The status of developer depends on the intention to sell, transfer, or award the property. However, delivery with the installation of household appliances shall always be taxed at the general rate of 21%.

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