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V1294-20 ·7 May 2020 ·consulta-vinculante Medium impact
Tax

Coworking services subject to Spanish VAT if the property used is located in Spain

A coworking company has requested clarification on where its services should be taxed for VAT purposes when the client is a business not established in Spain. The Directorate-General for Taxes (DGT) ruled that, as it is a mixed contract where the leasing of space is the principal supply, these are considered services related to real estate.

In 6 key points

How it affects those involved

This ruling clarifies the VAT place of supply rules for coworking models, confirming that the location of the real estate determines the tax jurisdiction in mixed contracts where property leasing is the primary component.

Lifecycle

2020-05-07PublishedPublished 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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