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V2834-19 15 October 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · arrendamiento de vivienda

Tourist rentals may be VAT exempt or subject to 10% depending on services provided

A homeowner renting property for tourism via a platform asks whether they must issue an invoice and which VAT rate to apply. The DGT rules that it depends on whether complementary hospitality services are provided.

The question raised

Whether the consultant must issue an invoice for the operation consulted, and, where applicable, what the taxable base and the applicable tax rate are.

The DGT's ruling

If the lease does not include hospitality industry services (cleaning, laundry, etc.), the operation is exempt from VAT. If such services are provided, the lease is taxed at 10%. In the case of platform mediation services, these are taxed at 21%. The owner must issue an invoice if the lease is subject to tax or if the recipient is an entrepreneur or professional.

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