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V2215-22 24 October 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

Private security services provided for real estate in Spain are subject to VAT

A Spanish company asked whether security services provided to an Italian company's permanent establishment in Spain were subject to VAT. The DGT stated that such services are considered rendered in Spain as they are related to immovable property located there.

The question raised

Taxation of the provision of services for Value Added Tax purposes.

The DGT's ruling

On-site security or surveillance services are considered services linked to real estate. If private security services refer to real estate located within the territory of application of the tax, they shall be subject to VAT for being related to said real estate. This includes both the protection of buildings and the security of movable property that requires the protection of the real estate itself.

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