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V0862-24 23 April 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · arrendamiento de vivienda

Tourist accommodation rentals are VAT exempt if they do not include hotel industry services

A tourist accommodation owner has requested clarification on the VAT rates applicable to their rental and the management company's services. The DGT clarifies that the rental is exempt if it is a simple lease, but subject to 10% VAT if it includes hotel services, whereas intermediation services are subject to 21% VAT.

The question raised

The purpose is to determine the applicable Value Added Tax rate for the transfer made by the applicant in favor of the company operating the lease, as well as whether the services provided by the operating company to the users may be considered services characteristic of the hotel industry, for the purpose of the exemption from said Tax regarding the aforementioned services.

The DGT's ruling

The leasing of residential property is exempt from VAT provided that the provision of complementary services characteristic of the hotel industry is not required. If services such as cleaning or linen changes are provided on a weekly basis, the activity is considered lodging, is not exempt, and the reduced rate of 10% applies. Intermediation carried out on behalf and for the account of the owner is taxed at the general rate of 21%.

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