Skip to content
Back to index
V0732-16 24 February 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · concesión administrativa

Early termination of a public works concession may constitute a supply subject to VAT

A local council asks whether the mutual termination of a parking concession is subject to VAT. The DGT states that the retrieval of parking spaces constitutes a supply of goods and examines whether the exemption for buildings applies.

The question raised

Question raised 1.- VAT liability regarding the termination of the public works concession contract.

The DGT's ruling

The redemption of parking spaces through the early termination of the concession contract constitutes a supply of goods subject to VAT, as the power of disposal over the asset is transferred. If the spaces have not been used uninterruptedly for two years, it shall be considered a first supply subject to the general rate of 21%. If they have been used for that period, it shall be a second supply that is subject to but exempt from VAT.

Free assessment and quote