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V2354-14 9 September 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · base imponible

Community charges and property tax passed on in office rentals form part of the VAT taxable base

A query was raised regarding whether property tax (IBI) and community charges passed on to an office tenant should be included in the VAT taxable base. The Directorate General for Taxes (DGT) ruled that these items, along with utilities and other actual costs, constitute part of the consideration subject to tax.

The question raised

Inclusion of the aforementioned tax in the Value Added Tax taxable base.

The DGT's ruling

The VAT taxable base for the leasing of real estate includes the rent and any assimilated amount or actual credit derived from the provision and its accessories. This comprises Property Tax (IBI), community fees, and utilities, provided they are passed on to the lessee. If an amount exceeding the actual expense is passed on, that difference also forms part of the taxable base.

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