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A company sought clarification on whether its management and technical direction services for hardware installation in a Spanish data centre were subject to VAT. The DGT indicates that if the services involve the supply and installation of hardware components, they could be considered services related to real estate and taxed in Spain.
Issue raised: Liability of operations for Value Added Tax.
If the actions involve the development and supply, including installation, of hardware elements until their commissioning in a data processing center, they would be subject to VAT. This is because they could be considered services directly related to real estate located in the territory of application of the tax, pursuant to Article 70.One.1 of Law 37/1992.
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