Back to index
V1373-15 30 April 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · arrendamiento a largo plazo

Long-term rental of recreational boats by foreign companies not subject to Spanish VAT if placed in foreign country

A French company without a establishment in Spain asks whether long-term rental of recreational boats to Spanish end consumers is subject to Spanish VAT. The DGT determines that, as the company has no establishment or permanent presence in Spain and the placement occurs in France, the service is considered to be provided outside Spain.

The question raised

1st.- Liability for Value Added Tax in the territory of application of the Tax regarding long-term recreational vessel leasing services, placed at the disposal of Spanish end consumers at the registered office of the service provider, who does not have a permanent establishment in the territory of application of the Tax, as of January 1, 2013.

The DGT's ruling

Since January 1, 2013, long-term leases of recreational vessels to end consumers are considered provided in Spain only if the vessel is placed at the disposal of the lessee in Spanish territory by an entrepreneur with a registered office or permanent establishment in said territory. If the provider has no registered office or establishment in Spain and the placement at disposal occurs abroad, the service is located outside the territory of application of the Tax.

Book your free first meeting