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V0164-16 19 January 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · arrendamiento de local comercial

Leasing of commercial premises is subject to VAT and the taxable base includes works carried out by the tenant

The inquirer asks whether VAT must be declared during a grace period in a commercial lease. The DGT rules that the leasing of commercial premises is subject to VAT and that the taxable base must include both the rent and any improvement works that remain for the benefit of the landlord.

The question raised

1.) Whether the consultant is obliged to declare VAT during the grace period.

The DGT's ruling

The leasing of commercial premises is not exempt from VAT, unlike those intended for residential use. The taxable base includes the monetary consideration and any actual credit or amount assimilated to rent, such as improvement works that become the property of the owner. If the amount of the consideration is not known at the time of accrual, the taxable person must determine it provisionally by applying well-founded criteria.

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