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V1212-19 29 May 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · medio propio personificado

Services provided by a municipally owned entity to the local council are exempt from VAT (except for specific cases)

A municipal society asks whether services rendered to its sole shareholder (the local council) are subject to VAT and how they should be declared. The DGT responds that such services are exempt if the entity is recognised as a personified own medium and are not specific services such as telecommunications or transport.

The question raised

Completion of the content of the boxes in Form 303, Form 390, and Form 347.

The DGT's ruling

Services provided by a municipally-owned company to its parent City Council, by virtue of assignments as a personified self-managed entity, are not subject to VAT provided they are not telecommunications, energy, transport, or slaughterhouse services. If there is an obligation to issue an invoice because the recipient is a Public Administration, such non-taxable operations must be declared in Form 390.

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