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V2327-18 20 August 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · intermediación

VAT on mediation services in leases is determined by the location of the property

A company providing mediation services in residential leases asks where its commissions should be taxed. The DGT responds that, as these are services related to real estate, the tax applies in the place where the property is located.

The question raised

Question raised: Liability for Value Added Tax on said mediation services.

The DGT's ruling

Mediation services in the lease of a property are considered services related to real estate. Therefore, they are understood to be performed and subject to VAT in the territory where the property is located. This special place of supply rule prevails over the general rule for the provision of services.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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