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V1290-20 7 May 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entrega de bienes

Aircraft and accessory deliveries may be VAT exempt when used by a public entity

The Ministry of Defence has requested a ruling on the VAT treatment regarding the purchase of aircraft along with spare parts, tools, software, and training services. The DGT has determined that these operations constitute a single supply and are exempt provided the requirements for use by public entities are met.

The question raised

Value Added Tax treatment regarding the acquisition of aircraft and other elements acquired jointly with them.

The DGT's ruling

The delivery of aircraft and accessory elements or services (such as spare parts, software, or training) constitute a single operation if the latter are not an end in themselves for the customer. These operations are exempt from VAT when the aircraft are used by public entities in the performance of their functions. For the exemption to apply to the accessory elements, the recipient must be the holder of the operation and the objects must be intended for use on board the aircraft.

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