Calling all accountant/fiscal types in Spain

Can someone assist - I have just been informed by our bank that the IVA rate charged by constructors on our property (with licence de obra) should only be 7%. Yet the builders are charging 16%.

I have asked a number of people but no one seems to really know.

My (Spanish) electrician friend assures me it should be 7% as this is what he charges.

Thanks

Read through this lot!
http://asesores.com/fiscal/tipiva.htm
It is complicated (as with all matter with VAT) but look uner teh section for items covers under 7% - number 3 (EJECUCIONES DE OBRA). That may be your answer but read the rest incase you are having work covered by another rule.

As said above, it is complicated. Some elements may be 7% others 16% and it depends on the contractual terms and the type of work too.
http://www.injef.com/php/index.php?o...1075&Itemid=26

That was a nightmare in the UK when they had different rates for new works and repair works. ;-(