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V0083-14 16 January 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · arrendamiento de inmuebles

Landlords must charge, declare and pay VAT even if the tenant's debt is subject to attachment

A leasing company has enquired whether it must declare and pay VAT on rental income when the Tax Agency has attached the debts owed by its client. The DGT has ruled that the landlord maintains its obligations to charge and declare the tax, and that the attachment may encompass the entire debt, including the VAT.

The question raised

Obligation of the applicant to declare and pay Value Added Tax.

The DGT's ruling

The lessor holds the status of a business operator and must charge VAT, issue invoices, and declare and pay the tax. The attachment of a credit may include the amount of VAT charged, as this is a component of the tax settlement and an amount at the free disposal of the taxable person. Therefore, the lessee must satisfy both the rent and the VAT amount, and the attachment is understood to refer to the totality of the amounts.

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