Skip to content
Back to index
V1928-23 5 July 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

VAT exemption on aircraft for public entities requires exclusive use for public functions

A public entity has requested clarification on whether it can apply VAT exemptions to the acquisition and maintenance of aircraft and drones. The Directorate-General for Taxes (DGT) has ruled that the exemption only applies if the aircraft are used exclusively for the performance of public functions.

The question raised

Whether the exemption provided in Article 22.Four.2 of Law 37/1992 is applicable to the acquisition, maintenance, or repairs related to the aircraft that the taxpayer may acquire or already owns.

The DGT's ruling

The exemption provided in Article 22.Four.2 of Law 37/1992 applies to the acquisition, leasing, or chartering of aircraft intended to be used exclusively by public law entities in the performance of their functions. If the use is not exclusive to public functions, as occurs when providing services to third parties, the exemption is not applicable. For drones to be considered aircraft for the purposes of this exemption, they must meet the requirements of heading 88.02 of the Customs Tariff.

Book your free first meeting