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V5098-26 30 June 2026 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

VAT rate for garage works may be 10% or 21% depending on building use and material costs

A property owners' association asks what VAT applies when a wall is demolished to improve vehicle access to a garage. The DGT states that the reduced rate of 10% applies if the garage is part of a building primarily used for residential purposes and certain renovation and repair conditions are met.

The question raised

Question raised: VAT tax rate applicable to the operation under consultation.

The DGT's ruling

The 10% rate applies to renovation and repair works in buildings primarily intended for residential use (at least 50% of the surface area) when the recipient is a community of owners. To this end, the construction must have been completed at least two years ago and the cost of materials provided by the contractor must not exceed 40% of the taxable base. If the garage is not located on the same plot or basement as the residential building, the general rate of 21% shall apply.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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