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V2436-20 16 July 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

Tree planting and maintenance services are subject to VAT if the land is located in Spain

A company manages a website for purchasing tree planting services on private plots. The DGT determines that these operations constitute the provision of services subject to VAT and analyses the tax treatment of mediation commissions paid to collaborators.

The question raised

Question raised: Liability for Value Added Tax on the services provided by the consultant.

The DGT's ruling

The planting and care of trees constitute a provision of services related to real estate, subject to VAT if the land is located within the territory to which the tax applies. The consultant must apply the general rate of 21%. Collaborators acting as intermediaries in Spain must charge 21% VAT, whereas if they are not established in Spain, the consultant shall be the taxable person through self-assessment.

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

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