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V2370-20 10 July 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · cesión gratuita

Free transfer of airport spaces under legal mandate is not subject to VAT, but recharging of supplies is

A state agency consulted whether the transfer of airport spaces by a state-owned commercial company and the subsequent recharging of supplies were subject to VAT. The DGT ruled that the transfer of spaces is not subject to VAT as it is free of charge and mandatory by law, whereas the recharging of supplies constitutes a taxable transaction.

The question raised

Liability for Value Added Tax regarding the provision of spaces as well as the pass-through of services and supplies to the consulting entity by the state-owned commercial company referred to in the consultation request.

The DGT's ruling

The free provision of physical spaces necessary for non-airport public services, mandatory by legal mandate, does not constitute an operation subject to VAT pursuant to Article 7.10 of Law 37/1992. However, the rebilling of supplies and services carried out by the state-owned commercial company to the state agency constitutes an operation subject to VAT, as the company acts as a taxable person. The tax base for said rebilling shall be the net amount of the actual expense, excluding the VAT incurred by the company, unless a higher amount is agreed upon.

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