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V0469-20 27 February 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · cesión onerosa

Commercial transfer of rail infrastructure subject to VAT

A public entity inquired whether the onerous transfer of rail infrastructure to a third party for operation is subject to VAT. The DGT responds that such operations are subject to VAT and, generally, not exempt.

The question raised

Question raised: Extension of the binding ruling of January 17, 2018, consultation V0065-18, as a consequence of a modification in the facts presented therein by the consulting entity. In particular, the provision of the transport service will no longer be carried out directly by the entity itself, but rather the entity will onerously transfer to a third party the right to use and exploit the infrastructure.

The DGT's ruling

The onerous transfer of the right to use and exploit railway infrastructures to third parties is subject to VAT, and the non-applicability provided in Article 7.8 of Law 37/1992 does not apply. Transfers to cover operating deficits are not considered subsidies linked to the price nor consideration for the service. Likewise, the entity is entitled to the deduction of input tax incurred on goods and services used exclusively for this taxable activity.

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