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V0459-20 26 February 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · medio propio personificado

Technical assistance services in fish markets provided by a separate legal entity are not subject to VAT

A Port Authority consulted whether technical assistance services for managing the first sale in a fish market, commissioned to a commercial company acting as a separate legal entity, were subject to VAT. The DGT ruled that these services are not subject to the tax as they do not fall within the exceptions for taxable activities provided by law.

The question raised

Subjectivity of the operations commissioned by the contracting authority for the purposes of Value Added Tax.

The DGT's ruling

The services provided by a commercial company holding the status of a personified in-house unit of the contracting authority are not subject to VAT pursuant to Article 7.8.C of the VAT Law. This non-subjectivity is maintained provided that the activities are not included in the list of subject exceptions under Article 7.8.F. In this case, the tasks of weighing, data capture, and IT management do not constitute port services or the operation of trade fairs.

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