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V2148-19 13 August 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · empresario

Remuneration for a homeowners' association president may be subject to VAT if they carry out business or professional activities

A query was raised regarding whether the annual remuneration approved for the president of a homeowners' association is subject to VAT. The DGT indicates that the transaction will be subject to the tax if the president acts as a businessperson or professional with the intention of intervening in the market.

The question raised

Taxation on the amount received as consideration for the aforementioned concept in Value Added Tax.

The DGT's ruling

Liability for VAT will depend on whether the president carries out a business or professional activity through the organization of means of production. If there is an intention to intervene in the production of goods or services, the tax must be charged and the obligations of a taxable person must be fulfilled. One is not an entrepreneur on an intermittent basis, but one can be if the provision is not occasional, isolated, and without an intention of continuity.

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