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V0022-24 13 February 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

Installation of photovoltaic equipment in buildings is subject to VAT if the property is located in Spain

A company requested clarification on whether VAT should be charged for the installation of equipment, such as solar panels, on buildings in Spain, Germany, and Portugal as part of a research project. The DGT ruled that these services are subject to VAT in Spain only when the installations are carried out on properties located within Spanish territory.

The question raised

Whether the consultant must charge Value Added Tax for the services consulted.

The DGT's ruling

Equipment installation services for smart building renovation projects are considered related to real estate. Therefore, they shall be subject to VAT when photovoltaic installations are carried out on real estate located within the territory of application of the tax. Operations carried out on real estate located in Germany and Portugal shall not be subject to VAT in Spain.

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