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V2271-19 21 August 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

Maintenance services for properties located in Portugal or the Canary Islands are not subject to VAT

A maintenance company inquired whether VAT should be applied to works carried out on electrical and telecommunications installations in hospitality premises located in Portugal and the Canary Islands. The DGT ruled that, as these are services related to real estate, the place of supply is determined by the location of the properties, meaning they fall outside the scope of Spanish VAT.

The question raised

Liability for Value Added Tax on the operations carried out by the applicant on behalf of its client.

The DGT's ruling

Maintenance and repair services for facilities are considered related to real estate. According to the regulations, the place of supply for these services is the location where the real estate is situated. Therefore, as they are carried out in Portugal and the Canary Islands, such operations are not subject to VAT. No tax amount should be charged on the invoices, without prejudice to the possible application of the Canary Islands General Indirect Tax.

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