iva on community redecoration

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happyh
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iva on community redecoration

Postby happyh » Thu Mar 01, 2018 8:39 am

Hi all.
We are a small community of 32 units.We haven't has a repaint/repair in over 10 years so are looking to do so.
We are looking to spend around €40k on the roofs and similar on the buildings so a total of around €80k.
We have conflicting advice on which iva rate will apply,either 21% or 10%, the difference being significant to our budgeting.
Does anyone have experience of iva ates applicable to community renovations?
Many thanks

Miro
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Re: iva on community redecoration

Postby Miro » Thu Mar 01, 2018 1:06 pm

Not sure why it would be anything other than 21% - but surely your administrator would know? Or ask the contractors who are going to quote for the work.
Don't worry about what people think, they don't do it very often

"Acquiring a dog may be the only opportunity a human ever has to choose a relative," Mordecai Siegal 1935-2010.

TorreDelAguila
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Location: Sayalonga

Re: iva on community redecoration

Postby TorreDelAguila » Thu Mar 01, 2018 4:44 pm

I was surprised to find, when involved in budgeting for concreting half a kilometer of campo road, that even Ayuntamiento purchases for public works attract the full IVA rate, with no refund possible. They were just as amazed such a thing was possible in the UK.
Chris

wollie
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Re: iva on community redecoration

Postby wollie » Thu Mar 01, 2018 5:40 pm

My understanding of how this works is when we go to Ferriateria to buy a bag of cement we pay full 201% rate.
When we hire someone to do job they buy the material, do the work and we pay the smaller rate of what used be 8% but may different.
So if the cement is €20 it will be +21%, if the cement etc + labour is €200 it will be + 8%.
I assume there is a rebate for registered businesses.
As i say that is how i understood when i was doing mine.

TorreDelAguila
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Location: Sayalonga

Re: iva on community redecoration

Postby TorreDelAguila » Thu Mar 01, 2018 6:25 pm

Could that be right?
Chris

happyh
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Posts: 45
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Re: iva on community redecoration

Postby happyh » Fri Mar 02, 2018 8:43 am

Thanks for your replies guys.
We obtained 4 quotes for the work and it was one of the contractors who quoted 10% iva.
I did some googling and on a specialist website found that there is a reduced rate of 10% iva covering many products and services including:
" renovation and repair of private dwellings"

I did ask our Adminstrator who replied yesterday:

"IVA 10% reduced rate is applicable to renovations carried out by individual owners, or communities, providing the element of labour within the total cost represents no less than 70% of the entire bill. In our experience the cost of materials (paint, prime, sealant, expansion joints mastic, etc) hardly ever exceeds 28% of the total cost, hence the reduced rate is fully applicable."

wollie
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Re: iva on community redecoration

Postby wollie » Fri Mar 02, 2018 8:53 am

When i did my project it was 8% but i do think i remember being told it has increased.
What makes this cost effective is tax paid by cost of labour which i did not know needed be more than 70%.

good luck...

Miro
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Posts: 3584
Joined: Tue Feb 27, 2007 8:20 pm
Location: Merseyside, formally Torremolinos

Re: iva on community redecoration

Postby Miro » Sat Mar 03, 2018 1:56 pm

Never knew IVA was so complicated!
Don't worry about what people think, they don't do it very often

"Acquiring a dog may be the only opportunity a human ever has to choose a relative," Mordecai Siegal 1935-2010.


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