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V0081-16 13 January 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · asistencia a la tercera edad

Residential leases with complementary hospitality services are subject to VAT

A foundation enquired whether the rental of housing for the elderly, including residential, cleaning, and security services, was exempt from VAT. The DGT ruled that neither the social assistance exemption nor the residential lease exemption applies due to the nature of the services provided.

The question raised

The consultant asks whether the services to be provided are exempt from Value Added Tax.

The DGT's ruling

Elderly care services are exempt only if provided by a public law entity or a private establishment of a social nature. The leasing of housing is not exempt if it involves an obligation to provide complementary services typical of the hotel industry, such as cleaning or laundry on a periodic basis. In this case, as residence and cleaning services are provided, the operation is subject to tax.

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