Skip to content
V0325-19 ·15 February 2019 ·consulta-vinculante Medium impact
Tax

Leasing with an option to purchase is subject to VAT

A public water sanitation entity has enquired whether the transfer of infrastructure to an irrigation community, via monthly fees and subsequent acquisition, is exempt from VAT. The DGT has ruled that the transaction is subject to the tax, as it fails to meet the requirements for non-taxability applicable to public administrations or irrigation communities.

In 6 key points

How it affects those involved

This ruling clarifies that leasing arrangements involving an option to purchase do not qualify for VAT exemptions typically reserved for specific public sector activities or irrigation communities, meaning VAT must be applied to the monthly fees.

Lifecycle

2019-02-15PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

Does this provision affect you?

The tax team reviews your specific situation.

Talk to the tax team
This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
Email
Contact