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V1715-17 4 July 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · comunidad de propietarios

Homeowners' associations must not charge VAT on community fees or special levies

A query was raised regarding whether a homeowners' association should charge VAT to its members on community fees. The Directorate-General for Taxes (DGT) ruled that, as a general rule, they should not, as they do not act as businesses or professionals.

The question raised

Whether the homeowners' association must charge Value Added Tax to the co-owners upon the collection of community fees.

The DGT's ruling

Homeowners' associations do not meet the requirements to be considered businesses or professionals, acting instead as final consumers. Consequently, they may not charge VAT on community fees or assessments, nor may they deduct the tax incurred. They shall only charge VAT when carrying out business or professional activities, such as the leasing of communal spaces.

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