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V1477-19 19 June 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicios prestados por vía electrónica

Property maintenance services are subject to VAT if the assets are located in Spain

A tourist rental company has requested a ruling regarding the VAT liability of web support services, photographic reporting, and repairs. The DGT has determined that property maintenance is subject to the tax due to its direct link to the asset, whereas the location of photographic reporting is determined by the recipient.

The question raised

1. Liability for Value Added Tax on services provided to an entity established in a third State relating to the support and maintenance of an external website where rentals are advertised. 2. Liability for Value Added Tax on services relating to the production of photographic reports of the properties that will be subject to advertising on the website. 3. Liability for Value Added Tax on maintenance and repair services in dwellings and which are invoiced to the tenants.

The DGT's ruling

Property repair and maintenance services are considered related to real estate and are subject to VAT if they are located in Spain. Photographic reports on real estate do not have a sufficiently direct link to the asset to apply the special rule, and are located according to the recipient's headquarters. Software services provided to a client based outside of Spain would not be subject to VAT, unless they are effectively used to carry out transactions subject to tax in Spanish territory.

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