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V2669-20 18 August 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

Architecture services related to real estate in Melilla are not subject to VAT

An architect consulted whether their services provided to an entity in Melilla are subject to VAT. The DGT ruled that, as the services relate to real estate located in Melilla, the transaction is not subject to the tax because Melilla is not part of the Spanish VAT territory.

The question raised

To determine whether the aforementioned operation is subject to Value Added Tax.

The DGT's ruling

Technical services related to the execution of works, such as those provided by architects, are considered to be performed in the place where the real estate is located. Since Melilla is excluded from the Spanish territory to which VAT applies, services linked to real estate located there are not subject to the tax.

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