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V2526-19 18 September 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · concesión administrativa

Lease of public property via administrative concession exempt from VAT

A public enterprise asks whether the provision of facilities and ancillary services to another public entity is subject to VAT and how to claim the tax paid. The DGT responds that such transactions are not subject to VAT when carried out through an administrative concession or authorization of public property.

The question raised

Whether the transfer of said facilities is subject to Value Added Tax. Deductibility of the tax installments incurred by the taxpayer in the acquisition of goods and services to be used in said transfer.

The DGT's ruling

The transfer of use of a public domain property through an administrative concession or authorization is not subject to VAT pursuant to Article 7.9 of Law 37/1992. If the transfer is carried out through a contract of a civil or administrative nature regarding a patrimonial asset, the transaction shall be subject to the tax. Ancillary services are considered a single supply that shares the tax treatment of the principal supply. For the deduction of tax installments in entities with dual activity, a reasonable and homogeneous imputation criterion must be applied for goods and services intended for simultaneous use.

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