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V0558-18 27 February 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · asesoramiento fiscal

Property rental declarations not considered immovable-related services for VAT location

A professional inquired whether their advisory services to non-residents were subject to VAT or whether the special rule for immovable property location applied when dealing with property rental. The DGT ruled that the service is general tax advisory and not a service involving legal or physical modification of the property.

The question raised

Subjectivity of the services under consultation to Value Added Tax.

The DGT's ruling

The provision of legal services for the filing of tax returns regarding imputed income from real estate is not considered a service related to real estate. This is because the service does not seek the physical or legal modification of the property, but rather prioritizes the advisory component in the fulfillment of tax obligations. Therefore, the general rule for the location of advisory services applies, and not the special rule of Article 70.One.1º of Law 37/1992.

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