Skip to content
Back to index
V0894-17 10 April 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeción

Rentals of immovable property by a public company to its own administration are exempt from VAT

A fully-owned community administration company asks whether renting immovable property to its own administration is subject to VAT. The DGT responds that these transactions are not subject to VAT and that the company must correct the improperly charged VAT amounts.

The question raised

1.- Tax liability of the leasing services provided to the Autonomous Community.

The DGT's ruling

Real estate leasing services provided by a public commercial company to the Public Administration of which it is entirely dependent are not subject to VAT, as they are not activities included in the list of Article 7.8 of Law 37/1992. Therefore, the company must rectify the erroneously charged amounts. Likewise, the amounts incurred for goods or services intended exclusively for these non-subject operations shall not be deductible.

Book your free first meeting