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V0466-19 1 March 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

Engineering services for power plants may be subject to VAT if linked to a specific property in Spain

A company requested a ruling on the VAT liability of engineering and consultancy services for power generation plants at various stages. The DGT ruled that tendering and execution services linked to a specific plant are considered related to real estate, whereas general technical consultancy does not meet these requirements.

The question raised

Liability of the aforementioned services for Value Added Tax.

The DGT's ruling

Engineering services in the bidding and execution phases that refer to specific and determined power generation plants are considered services related to real estate. These shall be subject to VAT when the plants are located within the territory of application of the tax. Conversely, general technical consultancy services do not meet the requirements to be considered related to real estate, especially if they are not linked to a specific one.

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