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V0868-16 9 March 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · renting

Exact recharging of insurance costs in renting contracts is exempt from VAT

A renting company has enquired whether the portion of insurance costs recharged to its customers is exempt from VAT. The DGT has ruled that the provision of insurance is independent of the renting service and that the exemption applies only if the exact cost of the insurance is recharged.

The question raised

Legal classification of the insurance portion invoiced in cases where the policyholder is the consulting entity or is the end client.

The DGT's ruling

The provision of insurance in a renting contract is an operation independent of the lease. If the lessor invoices the client for the exact cost of the insurance contracted with a third party, said operation is exempt from VAT. If the amount invoiced is greater or less than the exact cost of the insurance, the operation shall be subject to the tax.

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