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V2952-20 30 September 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · arrendamiento de local comercial

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

A query was raised regarding whether the leasing of commercial premises requires the issuance of an invoice or if a receipt may be issued instead. The DGT ruled that, as it is not a residential lease, the transaction is subject to VAT and the landlord must issue an invoice.

The question raised

Obligation to issue an invoice or possibility of issuing a receipt, in view of compliance with the obligations derived from the regulations governing Value Added Tax.

The DGT's ruling

The lease of real estate is only exempt from VAT when it is intended exclusively for residential use under specific conditions. As this concerns a commercial premises, the transaction is subject to tax, therefore the owner must charge VAT on the invoice. Furthermore, the lessor is obliged to issue and deliver an invoice for the transaction, which may be a simplified invoice if it meets the regulatory requirements.

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