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V0015-19 3 January 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

Carpentry services for the installation of fixed elements in premises are considered services related to real estate

A company requested clarification regarding the place of supply for carpentry work carried out in premises located in Spain or abroad, where no materials are provided. The DGT determined that, as the work involves the installation of fixed elements, these are services related to real estate, and the place of supply is where the property is located.

The question raised

Place of supply of the aforementioned operations for Value Added Tax purposes.

The DGT's ruling

Carpentry work for the installation and assembly of fixed elements in premises is considered services directly related to real estate. Therefore, the place of supply is the location where said real estate is situated. If the real estate is not located within the territory to which the tax applies, the operation shall not be subject to Spanish VAT.

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