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V2141-19 13 August 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · precio privado

Parking service on private land managed by a commercial society is a private price subject to VAT

A commercial society owned by a municipality asks whether parking services on private land constitute a fee and whether they are subject to VAT. The DGT responds that, as the land is private and managed by a commercial entity, the consideration is a private price subject to VAT.

The question raised

Whether the provision of the service to users carried out on the aforementioned land is subject to Value Added Tax and, where applicable, whether it generates the right to deduct the Value Added Tax amounts incurred. Whether the amounts received for the provision of the service carried out on the land can be classified as a fee.

The DGT's ruling

The provision of parking services on privately owned land does not constitute a fee, as it does not involve a public domain asset nor does it meet the requirements of coerciveness. As it is managed by a local commercial company, the consideration is of a private price nature. Such provisions are subject to VAT as they are carried out by an entrepreneur in the course of their business activity. The right to deduct the input tax will depend on whether the goods and services are used exclusively for taxable transactions, non-taxable transactions, or both (applying pro rata).

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