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V0164-22 ·3 February 2022 ·consulta-vinculante Medium impact
Tax

Interest on advances to builders is exempt from VAT and the financial activity is ancillary

A company plans to build a student residence and provide advance funds to the builder in exchange for interest. The DGT rules that the residence services are subject to VAT, the interest received is exempt, and the financial activity is ancillary to the main business activity.

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2022-02-03PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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