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Practical Handbook VAT 2021

Classification of construction work

The following table sets out the classification, for the purposes of VAT, of work carried out, specifying in which cases it is a supply of goods and in which cases it is a supply of services.

Classes of goodsProvision of services.Deliveries of goods
Property

The builder supplies materials whose cost is less than or equal to 40% of the taxable amount of the VAT corresponding to the execution of the work.

The builder supplies materials costing more than 40% of the taxable amount of the VAT corresponding to the execution of the work.

Furniture

In general, it shall be the provision of services

Only when all the materials are provided by the contractor or when those provided by the owner of the work are insignificant.