Skip to content
Back to index
V2734-19 7 October 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · arrendamiento de local

Leasing of commercial premises by an association is subject to VAT and requires the issuance of an invoice

An association consulted whether leasing commercial premises to another entity was exempt from VAT and whether an invoice had to be issued. The DGT has determined that the transaction is subject to tax, the exemption does not apply, and there is an obligation to issue an invoice.

The question raised

Question raised: Whether the consultant holds the status of a businessman or professional for Value Added Tax purposes, the possible application of the exemption provided for in Article 20.one.12 of Law 37/1992 to said lease, as well as the obligation to issue an invoice.

The DGT's ruling

The leasing of business premises to an entity constitutes a provision of services subject to VAT and cannot benefit from the exemption for non-profit entities. As the transaction is carried out in favor of a businessman or professional acting as such, the association is obliged to issue an invoice. Consequently, the general tax rate of 21 percent must be applied.

Email
Contact