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V2508-20 22 July 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

Purchasing a garage space after acquiring a property is subject to 21% VAT

A taxpayer inquired about the VAT rate applicable to the purchase of a garage space in the same building where they already own a residence. The DGT ruled that, as the transaction is not a joint and simultaneous transfer with the property, the reduced rate does not apply.

The question raised

Value Added Tax rate applicable to the supply of the described parking space.

The DGT's ruling

To apply the reduced rate of 10% to parking spaces, these must be transferred jointly and simultaneously with the dwelling. If the parking space is acquired subsequent to the dwelling, it is not considered an ancillary supply to the same. In this case, the supply by a businessperson or professional shall be subject to the general tax rate of 21%.

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