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V2262-15 17 July 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

Construction services performed on real estate located in another Member State are not taxed in Spain

A construction professional inquired whether their services provided in Belgium were subject to Spanish VAT. The DGT determines that, as the works relate to real estate located abroad, the transaction is not located in Spain.

The question raised

Question raised: Taxation under Value Added Tax on the works performed.

The DGT's ruling

Services involving the preparation, coordination, and execution of real estate works are considered to be provided in the territory where the real estate is located. If the works are performed on real estate located in another Member State, the supply is not deemed to be carried out in the territory of application of Spanish tax. Alternatively, according to the general rule, the service would also not be located in Spain if the recipient is a taxable person established in said State. These transactions are classified as intra-Community supplies of services.

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