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V1654-22 8 July 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · dominio público radioeléctrico

Assignment of radio frequency usage rights by a concessionaire is subject to 21% VAT

A company that leases radios and commercialises radio frequencies has requested a ruling on the taxation of its operations. The DGT has determined that while the initial granting of radio frequencies by the Administration is not subject to VAT, subsequent assignments made by the company to third parties are taxable.

The question raised

Taxation of the aforementioned operations for Value Added Tax purposes.

The DGT's ruling

The allocation of radio frequencies through administrative concession or authorization is not subject to VAT pursuant to Article 7.9 of Law 37/1992. However, the assignments or transfers of such rights of use carried out by the concessionaire to third parties constitute the provision of services subject to the tax. Likewise, the sale or rental of electronic devices is subject to VAT at the general rate of 21%.

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