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V2246-19 20 August 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

Maintenance services for properties located abroad are not subject to Spanish VAT

A Spanish company has requested clarification on whether repair and maintenance services carried out on premises in Portugal and Greece for a Spanish client are subject to VAT. The Directorate-General for Taxes (DGT) has ruled that, as these services relate to real estate located outside of Spain, they are not subject to Spanish taxation.

The question raised

Liability for Value Added Tax on operations carried out by the applicant on behalf of its client, as well as those carried out by the persons or entities subcontracted by the applicant for the performance of said works.

The DGT's ruling

Maintenance, repair, and cleaning services for buildings are considered related to real estate. The place of supply for these services is the location where said real estate is situated. As the premises are located in Portugal and Greece, the operations are not subject to VAT within the territory of application of the tax. This criterion applies both to the services provided by the applicant and to the services subcontracted by the applicant abroad.

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