Reduced VAT Rate for Housing Deliveries: Legal Criteria and Case Law

• The concept of housing in the VAT Law is defined objectively, meaning a building or part of it suitable for housing people.
• The suitability for use as housing is determined by the objective characteristics of the building’s design and construction, along with its legal purpose, which must be to meet the need for housing.
• A certificate of habitability, occupancy license, or similar authorization is not required.
• The reduced VAT rate can be applied even if the certificate of habitability is obtained after the delivery of the building.

Source: serviciostelematicosext.hacienda.gob.es

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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