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V1596-18 8 June 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · arrendamiento financiero

Aircraft leasing may be VAT exempt if used exclusively by an international air carrier

A financial institution leased an aircraft with a purchase option to a company, which subsequently transferred it to an air operator. The DGT is analysing whether this financial lease is subject to VAT or if the exemption for international air navigation applies.

The question raised

Classification of the financial leasing carried out by the consultant in favor of the lessee entity, as well as the application of the exemption provided for in Article 22.Four of Law 37/1992 to said leasing.

The DGT's ruling

Financial leasing is classified as a provision of services as long as the purchase option is not exercised. Said provision may be exempt pursuant to Article 22.Four of Law 37/1992 if the aircraft is intended for its exclusive use by a company essentially dedicated to international air navigation. This exemption applies even if the acquirer or lessee is not the air navigation company, provided that such intended use is known and demonstrated.

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