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V0150-21 1 February 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · aprovechamiento cinegético

Transfer of hunting rights on woodland is subject to VAT and does not qualify for land lease exemption

A local council enquired whether transferring woodland for hunting purposes in exchange for a fee was exempt from VAT as a land lease. The DGT ruled that the transaction is subject to tax because the object of the contract is the hunting rights rather than the land itself.

The question raised

Exemption of the aforementioned lease from Value Added Tax.

The DGT's ruling

The transfer of hunting rights for a piece of land for a specified period and in exchange for a price is an operation subject to VAT. The exemption for land leases provided for in Article 20.One.23 of Law 37/1992 is not applicable, as in these contracts the object is not the land, but its hunting use. Therefore, the city council must charge the rate of 21 percent.

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