As new president of a community of owners I am concerned about the IVA calculated on the many invoices we receive for the various repairs done in the community. Some invoices are with 10% reduced rate and others 21% normal rate. As I read the law: All ordinary repairs to the community apartments and the common areas should use the reduced rate. However we receive invoices with both rates og when I asked the builder he replied, that to be on the safe side he mostly calculated 21%. Our administrator never checks this.
Can anyone here confirm wether it is 10% or 21%?
Thanks!
Jytte
IVA reduced rate
Re: IVA reduced rate
I think it is actually both.
My recollection is that to qualify for the lower rate more than something like more than 70% of cost of service be labour.
So if a service costs €100 and the work costs €75 the IVA be 10%
If an item costs €75 and fitting same is €25 the tax be 21%
I am not actually sure where the cut-off % is but i think if you compare a few invoices you get the idea.
My recollection is that to qualify for the lower rate more than something like more than 70% of cost of service be labour.
So if a service costs €100 and the work costs €75 the IVA be 10%
If an item costs €75 and fitting same is €25 the tax be 21%
I am not actually sure where the cut-off % is but i think if you compare a few invoices you get the idea.
Re: IVA reduced rate
Yes, I am aware of the limitation regarding cost of materials:
"the cost of materials must not exceed 40% of the gross tax base of the operation" - but would there be any other limitations??
Jytte
"the cost of materials must not exceed 40% of the gross tax base of the operation" - but would there be any other limitations??
Jytte
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