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V0962-20 21 April 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · fletamento total

Aircraft chartering to public entities is VAT exempt, but preparation supplies are not

A company engaged in firefighting services has requested clarification on whether the chartering of its aircraft to public entities and the purchase of supplies for their preparation are exempt from VAT. The DGT has ruled that while the chartering service is exempt, the goods and services acquired by the company to prepare the aircraft are not.

The question raised

Taxation under Value Added Tax regarding both the charter contract entered into with public entities and the acquisition of the goods and services necessary for the preparation of the aircraft.

The DGT's ruling

The aircraft charter contract with public entities for the fulfillment of their functions is a provision of services exempt from VAT pursuant to Article 22.4 of Law 37/1992. However, exemptions for provisioning products and services for the direct needs of the aircraft do not apply when the acquirer is the consulting company and not the public entity itself. Therefore, suppliers must charge VAT to the company.

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