The VAT on Housing Reforms and Buildings

From the April 14, 2010 and until 31 December 2012 applying the reduced rate of 8 percent (7 percent by July 1, 2010) to the execution of renovation and repair work on buildings or part of housing for them when they meet the following requirements:

The recipient is an individual that intended for private use (not business or professional activity). Also when the recipient is a community of owners for the deeds done in the building that is the vivienda.La construction or rehabilitation of housing must be completed at least two years before the start of the renovation or reparación.Quien perform the work must not bring materials costing more than 33 percent of the tax base of the operation. For example: Placing the floor of a home for € 10,000, € 3,000 corresponding to materials provided by those doing the work, all of it is taxed at 8 percent (7 percent by July 1, 2010). A work by a total amount of 10,000 €, if the materials provided amounted to € 5,000., is taxed, however, the standard VAT rate of 18 percent (16 percent by July 1, 2010).

This amendment extends the reduced rate, until now limited to masonry, to all types of renovation and repair, such as:

plumbing, carpentry, electrical, painting, plasterers, facilities and montajes.En invoice shall include the cost of materials supplied or the requirement that the cost of the material provided does not exceed 33% of the tax base.

Budget Calls for Reform of your home or building, knowing that the reduced VAT rate (8%) applies to all works of repair or renovation, such as masonry, plumbing, carpentry, electrical, painting, plasterers, and assembly facilities. Performed by an individual in your home for private use, or by the homeowners in the building where this house is. The home must have at least 2 years old, after the construction or rehabilitation. The materials provided can not exceed 33% of the tax base of operation, to be removed, provided in the bill.