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V0791-24 17 April 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · reglas de localización

Construction services for real estate located in France are not subject to Spanish VAT

A Spanish joint venture (UTE) carries out waterproofing works on a state-owned building in France and seeks clarification on VAT invoicing and deduction. The Directorate-General for Taxes (DGT) clarifies that, as these are services related to real estate, taxability depends on the location of the property and is governed by French regulations.

The question raised

Invoice requirements. Possibility of deducting VAT incurred in France in the Spanish tax return. Possibility of claiming the tax incurred in France through Form 360. Method of declaring operations in France.

The DGT's ruling

Services related to real estate are considered to be provided in the location where the property is situated. Therefore, construction works on a property in France are not subject to Spanish VAT. The company must comply with French invoicing requirements and, to recover the VAT incurred in France, must request a refund using Form 360, provided that French regulations do not consider the company to be established there.

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