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V0654-16 17 February 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · intermediación

Real estate brokerage abroad is not subject to Spanish VAT, except for hotel accommodation or similar services

A company mediating residential rentals in Italy has requested a ruling on the VAT applicability of its services. The DGT has determined that real estate brokerage performed outside of Spain is not taxable in Spain; however, photography and location services provided by Italian entrepreneurs are subject to Spanish VAT via the reverse charge mechanism.

The question raised

Liability for Value Added Tax on the services provided and received by the consulting entity.

The DGT's ruling

Intermediation in the leasing of real estate is considered a service related to real estate. These services are subject to VAT in the place where the real estate is located. If the real estate is located abroad, there is no liability for Spanish VAT, unless they are hotel accommodation services or analogous services (with complementary catering services). On the other hand, photography and location services do not have a sufficiently direct link to the real estate, so the general rule of location applies.

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