A reduced VAT rate (10%) can be applied to all types of renovation and repair works, such as plumbing, carpentry, electrical, painting, plasterers, facilities, installations etc., provided that the following requirements are met :
1) That the beneficiary is a natural person WITHOUT business or professional activity who uses the house for their own use or a community of owners of a building destined mainly for housing.
2) That the date of construction or rehabilitation of the housing is at least 2 years old.
3) That of the total budget of the work, that’s it, the cost of the contribution of the materials does not exceed 40 percent of the tax base of the invoice.
If these three requirements are met, the reduced VAT of 10% will be applied (Section 91. One. 2. 10th of the VAT Law 37/1992), otherwise the applicable VAT rate will be the general one (21%).
The employer/professional is responsible for the correct application of VAT on the invoice, and to whom the tax administration will be addressed in case of verification. For this reason, it is advisable to specify in the invoice the cost of the materials and, if necessary, to request the owner to sign a certificate attesting that the first two requirements are met.