Reduced VAT on construction work when working for an insurance company

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The issue of reduced VAT on home renovation and repair work has raised many doubts among self-employed workers in the sector. It is difficult to clearly discern when the reduced rate of tax should be applied and when not, even though the law gives us some indications to know. When in doubt, the most prudent thing to do is to charge the general rate or consult the Tax Agency , because there are many different cases that may arise.

We remind you that the reduced VAT can be applied to the following works:

1. Construction of new housing . Execution of works aimed at the construction or rehabilitation of buildings or parts thereof intended primarily for housing, including premises, annexes, garages, installations and complementary services located therein.

2. Rehabilitation singapore phone numbers list works and related works. Rehabilitation works will be subject to reduced VAT if the following requirements are met:
* More than 50% of the total cost of the project corresponds to consolidation or treatment works on structural elements, facades or roofs or related works.
* The total amount of the works exceeds 25% of the purchase price of the building (if carried out in the two years prior to the start of the rehabilitation works).



3.- Construction work on homes. Renovation or repair work on homes is subject to reduced VAT provided that the recipient is a natural person or a community of owners, not a business owner or professional, and uses the home for personal use, without renting it to third parties. It is also necessary that the construction or renovation has been completed at least two years previously and that the cost of the materials supplied does not exceed 40% of the total cost of the work.