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V0061-22 14 January 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · arrendamiento de negocio

Leasing land for electric vehicle charging points is subject to 21% VAT

A landowner has requested a ruling on the tax treatment of leasing land to a company for the installation of electric vehicle charging points. The DGT has determined that the transaction is subject to VAT and has analysed the applicable income tax (IRPF) withholding based on the nature of the land.

The question raised

Classification and subjection to withholding of income received under Personal Income Tax and the subjection of said operation to Value Added Tax. The IAE heading in which the registration should be made is also questioned.

The DGT's ruling

The lease of land for the installation of elements of a business activity, such as charging points, constitutes a provision of services subject to VAT at the general rate of 21%. For Personal Income Tax (IRPF), if the land is rural and leased as an isolated element, the income is not subject to withholding. If the land is urban or if it is a business lease, a 19% withholding will apply if the lessee is a taxable person. Regarding the Economic Activities Tax (IAE), the activity shall be classified under heading 861.2 if it is urban or under group 862 if it is rural.

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