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 goods | Provision 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. |