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V1791-15 8 June 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · encomienda de gestión

Services provided by a public business entity through a management mandate are not subject to VAT

A general directorate inquired whether the services provided by a public business entity attached to its ministry were subject to VAT. The DGT responds that, as they are carried out through a management mandate and hold the status of an instrumental internal resource, such operations are not subject to the tax.

The question raised

Question posed: Subjectivity of operations to Value Added Tax.

The DGT's ruling

The supply of goods and provision of services carried out by public sector entities that hold the status of an instrumental internal resource and technical service of the Public Administration, by virtue of management mandates, are not subject to VAT. This applies when the entity acts as an instrumental internal resource of the mandating Administration and its dependent bodies.

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