Skip to content
Back to index
V0899-23 18 April 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · cesión de uso

Commercial lease assignment subject to VAT; taxable base depends on linkage

A commercial property owner seeks advice on VAT and ITP/AJD applicability of assigning an indefinite real right of use to their partner in a relationship. The DGT determines the transaction is subject to VAT as a business service and examines the taxable base according to whether linkage or exemption applies.

The question raised

Subjectivity to Value Added Tax of said assignment and its taxable base. Subjectivity, where applicable, of the constitution of the aforementioned real right to any of the modalities of the Transfer Tax and Documented Legal Acts Tax.

The DGT's ruling

The assignment of use of a commercial premises in exchange for a fee is a provision of services subject to VAT if carried out by an entrepreneur or professional. The taxable base shall be the total amount of the consideration, although if there is a relationship between the parties and certain requirements are met, it shall be the normal market value. Regarding ITP and AJD, if the operation is subject to VAT, it is not taxed under onerous asset transfers, but may be taxed under the Documented Legal Acts modality if formalized in a public deed.

Book your free first meeting