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V4631-16 2 November 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entrega de bienes

If material costs exceed 40%, the entire project is taxed at 21% and labour cannot be separated

A business owner has enquired whether materials and labour can be invoiced separately to apply different VAT rates for a renovation project. The DGT has ruled that if the cost of materials exceeds 40% of the taxable base, the entire transaction is classified as a supply of goods and is subject to the 21% VAT rate.

The question raised

Si, dentro de la misma obra, es posible separar en dos facturas diferentes el coste de los materiales empleados y el de la mano de obra, con el fin de poder aplicar a cada parte diferenciada el tipo correspondiente.

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