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V1362-22 14 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · exención de arrendamiento

Rent of homes may be VAT-exempt if no hotel services are provided

A tourism apartment rental company asks whether its rentals are subject to VAT and how to tax professional management services it hires. The DGT responds that rental is exempt if used for residential purposes and does not include hotel services, but professional management services are subject to standard VAT.

The question raised

1. Regarding VAT, the following is questioned:

The DGT's ruling

The leasing of real estate for residential purposes is exempt from VAT if no complementary services typical of the hotel industry, such as cleaning or changing linens on a weekly basis, are provided. Advertising management and key delivery services provided by professionals are subject to the general rate of 21%. There is no obligation to issue an invoice for exempt residential leasing operations, but there is for professional management services.

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