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V0565-14 4 March 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Life raft repairs exempt from VAT if vessel meets activity and registration requirements

A query was raised regarding whether the repair of life rafts for owners of inshore fishing vessels is exempt from VAT. The DGT ruled that the exemption depends on the vessel being used for the activities specified by law and meeting all regulatory requirements.

The question raised

Application of any exemption for Value Added Tax purposes.

The DGT's ruling

Repair services for life rafts are exempt from VAT provided that the vessel is used for the activities set forth in Article 22.1 of Law 37/1992 and the requirements of Article 10.1 of the Tax Regulation are met. Otherwise, the services shall be subject to and not exempt from VAT.

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