Through Resolution NAC-DGERCGC24-000000013 issued on March 28, 2024, the Tax Authority established the following list of construction supplies that are subject to a 5% Value Added Tax rate, if transferred locally:

Category Subcategory
Reinforcement steel bar Reinforced corrugated AS42 steel rods with diameters of 8mm, 10mm, and 12mm.
Construction aggregates Clay
Concrete Ready-mix concrete
Binder material Cement and its derivatives
Cement residue
Recyclable metallic materials Ferrous scrap
Mortar Mortar
Cement precursors Clinker
Prefabricated concrete and clay products Paving Stone
Prefabricated concrete products

The VAT paid on the local acquisition or importation of goods or services for the production and/or commercialization of construction materials subject to a 5% VAT rate, and which has not been offset, may be recorded as a deductible expense in the fiscal year in which the VAT payment was made.


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