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V1553-17 16 June 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · arrendamiento turístico

Tourist holiday rentals are exempt from VAT if they do not include hotel services

An individual inquired whether renting out their property for tourist use is exempt from VAT if no hospitality services are provided. The DGT ruled that because no complementary services typical of the hotel industry are provided, the transaction is exempt.

The question raised

Whether tourist leasing is exempt.

The DGT's ruling

The leasing of a dwelling is subject to VAT, but is exempt provided that the property is used exclusively for residential purposes and no complementary services typical of the hotel industry, such as cleaning or catering, are provided. If such services are provided, the lease ceases to be exempt. In the case under consultation, as there are no hotel services, the operation is exempt.

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