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V1344-15 29 April 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeción

Public entities not classified as public administrations are liable to VAT on their chargeable services

A public entity asks whether its services are subject to VAT. The DGT determines that, as it does not meet the definition of a public administration under Article 7.8 of the VAT Act, its commercial activities are subject to VAT.

The question raised

Subjectivity of the services provided by the applicant.

The DGT's ruling

Entities under public law hold the status of entrepreneurs when they arrange means to carry out a business activity for consideration. If the entity does not qualify as a Public Administration under Article 7.8 of Law 37/1992, its services are subject to VAT. This includes services provided to the entity or to its subsidiaries by public sector bodies, unless they constitute management mandates.

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