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V0220-24 27 February 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · regla general de localización

Christmas decoration assembly is not a real estate-related service and is taxed in the recipient's country

A Spanish entrepreneur inquired whether the assembly and disassembly of Christmas decorations in shopping centres for a Portuguese client constitutes a service related to real estate. The DGT ruled that, as these items are dismantled and do not become part of the property, the general rule of place of supply applies.

The question raised

Place of supply of the services provided by the applicant for Value Added Tax purposes.

The DGT's ruling

Assembly services for decorative elements that are dismantled and stored after use are not services linked to real estate. As the special rule of Article 70.One.1º of Law 37/1992 does not apply, the general rule of localization applies. The service is understood to be performed where the recipient's place of business is located, in this case, Portugal. Therefore, the transaction is not subject to Spanish VAT.

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