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V3272-17 21 December 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entidad urbanística de conservación

Public space maintenance services by urban development entities are VAT exempt

A conservation urban development entity has requested a ruling regarding the VAT liability of services provided to its members. The DGT has determined that the maintenance of public domain and public use spaces is exempt, whereas the maintenance of the drinking water network is subject to the reduced rate.

The question raised

Liability for Value Added Tax on services provided to its members.

The DGT's ruling

Services for the maintenance of urban development works in public domain and use open spaces are exempt under Article 20.One.12 of Law 37/1992. However, the exemption does not extend to the maintenance of private domain and use spaces nor to the operation of the drinking water supply network, which is subject to the reduced rate of 10%.

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