Skip to content
V2982-19 ·25 October 2019 ·consulta-vinculante Medium impact
Tax

Homeowners' associations must charge VAT on common area rentals, not on service charges

A homeowners' association enquired whether VAT should be applied to the distribution of common expenses and if co-owners can deduct it. The DGT ruled that the distribution of expenses is a final consumer activity exempt from VAT, whereas the rental of common areas to third parties is subject to the tax.

In 6 key points

Lifecycle

2019-10-25PublishedPublished 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