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V2238-19 20 August 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · ute

Turnkey construction of a golf course in Portugal by a joint venture is not subject to Spanish VAT

A joint venture consisting of two Spanish companies has requested a ruling regarding the VAT liability for the construction of a golf course in Portugal. The Directorate-General for Taxes (DGT) has determined that the supply of goods is not subject to Spanish VAT as the real estate is located in another country.

The question raised

Liability for Value Added Tax on operations carried out by the UTE in favor of the Portuguese entity, as well as those carried out by the companies comprising the UTE in favor of the latter, and those carried out by other entrepreneurs or professionals in favor of the UTE.

The DGT's ruling

The 'turnkey' construction of a golf course involving the supply of materials is classified as a supply of goods. As the real estate is located in Portugal, the transaction is not subject to Spanish VAT pursuant to Article 68.Two.3 of Law 37/1992. Services related to real estate located abroad are also not subject to the tax.

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