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V2147-19 13 August 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · domótica

Installation of home automation systems in property outside Spain is not subject to VAT

A home automation company has enquired whether the installation of smart systems in a hotel located in Jamaica is subject to VAT. The DGT has ruled that, as these services are directly related to real estate situated outside the territory where the tax applies, they are not subject to VAT.

The question raised

Consideration of the described services as being related to real estate for the purposes of applying the rules of localization of Value Added Tax.

The DGT's ruling

Supply services including the installation of home automation elements and smart system controls, up to their commissioning, are considered services related to real estate. As the real estate is located outside the territory subject to the tax, such activities are not subject to VAT pursuant to Article 70.One.1º of Law 37/1992.

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