Skip to content
Back to index
V1793-19 11 July 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · lugar de realización

Leasing mobile terminals to non-resident companies may be exempt from VAT, unless the effective use clause applies

A natural person has requested a ruling regarding the taxation of mobile phone rentals and tourist services for employees of foreign companies. The DGT indicates that leasing mobile phones to non-resident companies is generally not subject to VAT, unless the effective use clause applies if they are used to carry out taxable operations in Spain.

The question raised

Place of supply of operations carried out for the purposes of Value Added Tax.

The DGT's ruling

The rental of mobile terminals to non-resident companies is not subject to VAT as it does not meet the localization criterion of Article 69.One.1º of Law 37/1992. However, it could be taxed in Spain through the effective use clause of Article 70.Two if the lessee entities use the terminals to carry out operations subject to the tax in Spanish territory. For tourism services, taxation will depend on their nature and whether the special regime for travel agencies applies.

Book your free first meeting