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V2174-17 22 August 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entidad urbanística de conservación

Security services provided by urban development entities are subject to VAT

An urban development entity enquired whether the surveillance and security services it provides to its members are subject to VAT. The DGT ruled that these operations are taxable and not exempt, distinguishing them from the maintenance of public spaces.

The question raised

Question raised 1. Subject to Value Added Tax of security services.

The DGT's ruling

Security and maintenance services for industrial estates provided by urban development conservation entities are subject to VAT. The exemption provided in Article 20.One.12 of Law 37/1992 is not applicable, as said exemption is limited to the conservation of urban development works in public domain and use open spaces. The entity must charge the tax to its members and may apply the pro rata rule if it carries out other exempt activities within the same differentiated sector.

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