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V2684-18 2 October 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · base imponible

Leasing of offices with works at the tenant's expense is subject to VAT and the taxable base includes such works

A company has requested a ruling regarding VAT on an office lease involving a rent-free period and adaptation works to be carried out by the tenant. The DGT has determined that the lease is subject to VAT and that the taxable base must include both the rent and the value of the works that remain for the benefit of the landlord.

The question raised

Accrual of Value Added Tax during grace periods, as well as the taxation of the reversal of the works carried out by the lessee or, where applicable, the removal of the works carried out by the lessee.

The DGT's ruling

The leasing of real estate intended for offices is subject to VAT. The taxable base includes the rent and any other actual credit to the lessor, such as the amount of the adaptation works carried out by the lessee that remain to their benefit. If the value of the consideration in kind is not known at the time of accrual, it must be provisionally determined. The return of the property, whether with or without the removal of the works, does not constitute an operation subject to VAT.

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