Spanish Supreme Court: Reduced VAT for Home Repairs Only Applies to Direct Homeowner-Contractor Agreements

• The reduced VAT rate of 10 percent applies only when the homeowner contracts directly with the contractor.
• The standard VAT rate of 21 percent applies if a home insurance company covers the repair cost through an arrangement with the supplier.
• The 10 percent rate may apply if the insurance reimburses the homeowner for contracted repair costs.
• Insurance companies may need to review arrangements to ensure compliance with this interpretation.

Source: alvarezandmarsal.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.