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V1725-17 ·4 July 2017 ·consulta-vinculante Medium impact
Tax

Leasing of café operations by an association is subject to 21% VAT

A non-profit association inquired whether leasing its café to a company in exchange for a monthly fee is subject to VAT. The DGT ruled that the transaction is subject to the general rate of 21% and explained how the pro rata rule must be applied to deduct input tax.

In 6 key points

How it affects those involved

This ruling clarifies that commercial activities carried out by non-profit entities, such as leasing premises for business use, are subject to standard VAT rates, affecting how these entities manage their tax deductions.

Lifecycle

2017-07-04PublishedPublished 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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