Reduced VAT Rate of 4% Only Applies to Contracts, Not Sales with Installation

• The reduced VAT rate of 4% for overcoming architectural barriers does not automatically apply to the supply of fixtures with installation.
• Only contracts of work allow for the reduced rate, while sales with installation are subject to standard VAT.
• The distinction between a supply with installation and a contract of work is crucial for VAT application.
• The reduced VAT rate is reserved exclusively for contracts of work aimed at overcoming architectural barriers.
• The main purpose of the agreement determines whether it is a supply with installation or a contract of work.

Source: commercialistatelematico.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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