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V2859-17 3 November 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · arrendamiento de vivienda

Residential leasing and ancillary cleaning services are exempt from VAT

A query was raised regarding whether a cleaning service charged alongside the rental of a holiday apartment must be invoiced. The DGT has determined that residential leasing is an exempt transaction and that cleaning, being ancillary, shares the same tax treatment.

The question raised

Obligation to issue an invoice for said service even if it is exempt from Value Added Tax.

The DGT's ruling

The leasing of real estate for exclusive residential use is exempt from VAT, provided that services characteristic of the hotel industry are not provided. Cleaning services performed at the beginning or end of the contracted period are not considered hotel services, but rather ancillary to the lease. As an ancillary provision, the cleaning service follows the tax treatment of the principal service and is exempt from VAT. There is an obligation to issue an invoice if the recipient requests it for the exercise of tax-related rights.

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