Barceló Creations

VAT reduced to 8% HOUSING REHABILITATION:

It is a year to the deadline stipulated by Royal Decree Law 6/2010 of 9 April 2010 which established the possibility to apply reduced VAT rates to 8% in order to encourage housing rehabilitations. To qualify for the reduced VAT rate is necessary to fulfill certain requirements:

· The recipient will perform the work is a natural person (not acting as an entrepreneur or professional) and that the house where they will perform the rehabilitation reform is intended for private use. This section also performed works whose recipient is a community of owners.
· That the property to the reform has been built or renovated with at least two years.
· That the person performing the work does not provide materials for the execution of the work whose cost does not exceed 33% of the taxable amount of the final invoice is issued to the customer.

After seeing the conditions can be defined for VAT purposes what is meant by rehabilitation work for which the cost of the work to be covered by the project must exceed 25% or purchase price of the building, if made in the years before the completion of the work or the market value at the time of rehabilitation, in both cases the value discounting always suelo.Otro the requirements for a work to be understood as rehabilitation is that more than 50% of the executions of work included in the project should be directed to the reconstruction of the building and implementation of similar or related works.

Let's see what we mean by similar works and related works. For similar work means the structural adequacy to provide security to building constructive reinforcement works or adequacy of the foundations, the expansion of floor area (above and below ground), the reconstruction of facades and interiors and courtyards of installation of elevators including those for saving architectural barriers for disabled use. On the other hand are considered by the related works of masonry, plumbing and carpentry, for improving and adapting enclosures, electrical, water, air conditioning and fire protection and energy rehabilitation works. Importantly, the cost related works should be less than the sum of the analog further rehabilitation.