Skip to content
Back to index
V2493-14 23 September 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servidumbre de paso

Creation of an easement on rural land is exempt from VAT

A public entity has requested clarification on whether the creation of an aerial electricity easement over rural land, in exchange for a single payment, is subject to VAT and whether an invoice must be issued. The DGT has determined that the transaction constitutes an exempt provision of services and that there is an obligation to issue an invoice, as the recipient is a business.

The question raised

Taxation of the transaction within the scope of Value Added Tax.

The DGT's ruling

The establishment of an easement of way over rural land is considered a provision of services exempt from VAT pursuant to Article 20.One.23º of Law 37/1992. Although the transaction is exempt, there is an obligation to issue an invoice when the recipient is a businessperson or professional acting as such.

Book your free first meeting