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V0846-14 26 March 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · subrogación

Assessment of VAT on service provision in a financial lease assignment

A simplified regime business inquired whether the assignment of a financial lease contract for an industrial vehicle was subject to VAT. The DGT confirms that the assignment of the lessee position constitutes a service supply subject to VAT.

The question raised

Whether or not said subrogation is subject to Value Added Tax and, if applicable, its taxable base.

The DGT's ruling

The subrogation of the lessee's position in a financial lease agreement constitutes a provision of services subject to VAT, as it is carried out by a business operator in the course of their activity. The taxable base shall be determined according to the rules of related-party transactions if applicable. As it is a transfer of a fixed asset, the tax amount must increase the tax amount of the simplified regime and the issuance of an invoice is mandatory.

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