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V2257-15 17 July 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

VAT does not apply if the assembly services of structures remain permanently attached to a property outside of Spain

A company inquired whether the installation of conveyor belts and metal structures in properties outside of Spain was subject to VAT. The DGT determines that, as they remain permanently attached to the property, they are considered services related to real estate and are governed by its location.

The question raised

Question raised: Exemption from Value Added Tax.

The DGT's ruling

Services related to real estate are considered to be provided in the territory where said property is located. For this special rule to apply, the relationship between the service and the property must be sufficiently direct. In the case of installations that remain permanently attached to the property, the relationship is direct and the property is the central element. Therefore, if the property is outside the territory of application of the tax, the operation is not subject to Spanish VAT.

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