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V1344-20 11 May 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · medio propio personificado

State commercial company services may or may not be VAT liable depending on recipient and activity

A state commercial company acting as a personified own medium queries whether its services are subject to VAT. The DGT clarifies that liability depends on whether services are provided under own medium assignments to dependent public administrations or to independent entities, and on whether the activity is exempt by law.

The question raised

Whether the services that the applicant may provide by virtue of the consulted assignments are subject to Value Added Tax.

The DGT's ruling

Services provided as a personified own means under Article 32 of the Law on Public Sector Contracts shall not be subject to VAT, nor shall those provided to the Administration to which they belong or to entities entirely dependent on it (except for specific activities such as airport services). Services provided to public entities that are not dependent on the General State Administration and are not contracting authorities shall be subject to the tax.

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