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V0353-18 8 February 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

Real estate consultancy, promotion and marketing services are subject to VAT, unless classified as mediation in exempt financial transactions

A consultancy firm has requested clarification on whether commissions for advising on the sale of real estate or shares in real estate companies are subject to VAT. The DGT has determined that if the service constitutes an integrated management and value-creation service, it is treated as a single service subject to VAT, unless it can be proven to be pure mediation in exempt financial transactions.

The question raised

Liability for Value Added Tax on commissions charged by the applicant to a Luxembourg entity, both in the case of the sale of real estate and the sale of shares in a company whose sole asset is real estate.

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