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V0414-20 20 February 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · arrendamiento de vivienda

Rental of housing with weekly cleaning services subject to reduced VAT rate

A company asks whether the rental of a property for tourist use, including weekly cleaning and laundry, is exempt from VAT. The DGT responds that, as the services are complementary to the hotel industry, the operation is no longer exempt and must be taxed at the reduced rate.

The question raised

Whether the described services are considered characteristic of the hotel industry and, if applicable, the applicable Value Added Tax rate. Deductibility of the input tax paid in the course of the activity.

The DGT's ruling

The leasing of furnished dwellings is exempt from VAT provided that no complementary hotel industry services are provided. Cleaning of the interior of the apartment and the changing of linen on a weekly basis are considered hospitality services. If these services are provided, the transaction ceases to be exempt and the 10% tax rate applies.

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