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V1848-18 25 June 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · arrendamiento urbano

Leasing of an agricultural warehouse with rural land for livestock farming is subject to VAT

An individual has enquired whether the leasing of an agricultural warehouse and an associated plot for cattle farming is exempt from VAT. The DGT has determined that the transaction is subject to the tax because the warehouse is the fundamental object of the contract.

The question raised

Application of the exemption provided in Article 20.One.23º of Law 37/1992.

The DGT's ruling

The lease of an agricultural warehouse together with adjacent rural land, for a fixed term and in exchange for a price, is a transaction subject to VAT. The exemption provided in Article 20.One.23º of Law 37/1992 does not apply because the fundamental object of the contract is the warehouse intended for livestock farming, which excludes the exemption for agricultural land and buildings.

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