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V3327-20 11 November 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

Kitchen furniture installation taxed at 10% VAT, while appliances are taxed at 21%

A query was made regarding the VAT rate applicable to the supply and installation of kitchen furniture and appliances in a self-build property. The DGT has determined that the installation of kitchen furniture is subject to the reduced rate of 10%, whereas appliances are subject to the standard rate of 21%.

The question raised

Value Added Tax rate applicable to the supply and installation of kitchen furniture and household appliances in the construction of a dwelling under a self-build regime.

The DGT's ruling

Works carried out for the construction of a dwelling, including the installation of kitchen furniture, are taxed at the reduced rate of 10% if direct contracts are formalized between the developer and the contractor. However, the supply of household appliances is taxed at the general rate of 21%, even if carried out jointly with the construction. The reduced rate of 10% applies regardless of whether the developer contracts the entirety of the work with a single entrepreneur or with several specialists.

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