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V0022-18 10 January 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · ute

Transfer of human resources and helicopters between UTE members is subject to VAT

A Joint Venture (UTE) inquired whether the provision of personnel and helicopters by its members for an emergency public contract was exempt from VAT. The Directorate General for Taxes (DGT) ruled that these internal transfers between the UTE members do not meet the requirements for exemption.

The question raised

Whether both the contribution of human resources and the contribution of helicopters together with the necessary means to operate them can be considered transactions assimilated to exports and, therefore, exempt pursuant to Article 22 of Law 37/1992 on Value Added Tax.

The DGT's ruling

The transfer of human resources and helicopters, including their crew, carried out by the entities of a Joint Venture (UTE) in favor of the Joint Venture itself are subject to VAT. The exemption under Article 22.4 of Law 37/1992 does not apply because the recipient of the services is not the public entity, but the Joint Venture itself. The exemption requires that the acquirer be the public entity that uses the aircraft for public functions.

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