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V1122-18 30 April 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · arrendamiento de vivienda

Residential leases may be subject to or exempt from VAT if no hotel services are provided

A query was raised regarding whether the tourist rental of a flat managed by a mediation company is subject to VAT. The DGT ruled that the lease is exempt if the purpose is residential and no hotel industry services are provided, although the mediation company's commission is subject to the tax.

The question raised

Whether the activity is subject to, and where applicable exempt from, Value Added Tax.

The DGT's ruling

The lease of real estate intended for residential use is subject to and exempt from VAT, unless complementary services typical of the hotel industry are provided or it is leased to legal entities. If the company acts on behalf of the owner, the lease is carried out directly by the owner and the company only provides a mediation service. Said mediation is subject to the general VAT rate of 21%. For a community of property to be a taxable person, there must be a joint organization of means and a joint assumption of risk.

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