IVA reduced rate

Information and questions about the Law in Spain and Andalucia.
Jytte
Newbie
Posts: 4
Joined: Fri Mar 11, 2016 3:46 pm

IVA reduced rate

Postby Jytte » Sat Jun 16, 2018 9:44 pm

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

wollie
Resident
Posts: 1031
Joined: Fri Nov 07, 2014 8:53 pm

Re: IVA reduced rate

Postby wollie » Sun Jun 17, 2018 6:52 am

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.

Jytte
Newbie
Posts: 4
Joined: Fri Mar 11, 2016 3:46 pm

Re: IVA reduced rate

Postby Jytte » Sun Jun 17, 2018 1:24 pm

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


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