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A foundation asks whether payments to landowners for camp activities are subject to VAT. The DGT responds that the cession of land use constitutes a service supply subject to VAT if the landowners are entrepreneurs or professionals.
Question raised: Liability for Value Added Tax on the amounts charged by the landowners to the foundation for the adaptation of the same to the described activities.
The transfer of land for consideration constitutes a supply of services subject to VAT at the general rate of 21%. If there is no link between the parties, the taxable base is the total amount of the agreed consideration. In the event that a link exists, the taxable base shall be the normal market value.
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