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V1204-20 4 May 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Aircraft linen laundering may be VAT exempt if provided to international shipping companies

A catering services company has enquired whether the laundering of aircraft linen for international airlines is exempt from VAT. The DGT has ruled that the service may be exempt if provided directly to the company operating the aircraft and if the requirements for international navigation are met.

The question raised

Application of the exemption provided for in Article 22.Seven of the Value Added Tax Law to the services in question.

The DGT's ruling

The on-board linen laundry service is exempt if provided to meet the direct needs of aircraft used by companies essentially engaged in international air navigation. The exemption requires that the acquirer be the company itself that uses the aircraft in its activities. Furthermore, the provider must possess the duplicate invoice and a declaration from the acquirer regarding the use of the services.

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