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V1318-18 21 May 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · asistencia en tierra

Ground handling services for aircraft may be VAT exempt if they meet the direct needs of the aircraft or its cargo

A ground handling company has enquired whether its services provided to airlines are exempt from VAT. The DGT has determined that, if the services are subject to tax based on the place of supply, they may be exempt if they meet the direct needs of the aircraft or its cargo.

The question raised

Exemption of the services subject to consultation regarding Value Added Tax.

The DGT's ruling

Ground handling services provided to an international air navigation company are exempt from VAT when they meet the direct needs of the aircraft or its cargo, provided that the operation is subject to the tax. The exemption does not apply to services provided directly to passengers and not to the airline.

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