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V0232-18 1 February 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

Lease of premises and support services may be exempt from VAT under public entity regime

A public administration-owned society asks whether the lease of a fairground site and supporting services are subject to VAT. The DGT states these operations may be exempt if provided under internal management assignments or to a dependent public body, provided they are not mandatory activities.

The question raised

Liability for Value Added Tax on the operations subject to consultation and the applicable deduction regime.

The DGT's ruling

The assignment of use of a property and support services constitute the provision of services. These shall not be subject to Tax if they are provided through assignments executed by entities holding the status of a personified in-house unit of the contracting authority, or if they are provided to the Administration to which they depend without being activities subject to mandatory taxation. For entities that carry out both taxable and non-taxable operations, a reasonable and homogeneous criterion for the imputation of quotas must be applied, and those intended exclusively for non-taxable operations shall not be deductible.

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