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V0822-19 16 April 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · medio propio personificado

Services provided by a personified in-house unit to contracting authorities are not subject to VAT

A commercial company acting as a personified in-house unit for the State has requested a ruling on the VAT liability of its services and leases. The DGT clarifies that services are not subject to VAT if provided to entities with the status of a contracting authority, and real estate leases are not subject to VAT if the recipient is the General State Administration or entities wholly dependent on it.

The question raised

Clarification of certain issues contained in the binding ruling of April 25, 2018, with reference number V1044-18.

The DGT's ruling

The provision of services is not subject to VAT when carried out by a personified in-house unit to entities holding the status of contracting authorities under the Law on Public Sector Contracts. Regarding real estate leases, these are not subject to VAT if the lessee is the General State Administration, another Administration fully dependent on it, or entities and companies fully dependent on the same. The non-subjectivity does not apply if the recipient is a third party other than these administrations or dependent entities.

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