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V3297-23 26 December 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · autoconsumo de bienes

Leasing to an intermediary company is subject to 21% VAT and may trigger self-supply

A property developer has enquired whether the rental of apartments to an intermediary company (which provides hotel services) is subject to VAT. The DGT has ruled that the transaction is taxable rather than exempt, applying the standard rate of 21%.

The question raised

Whether the leasing to be carried out by the applicant will be subject to Value Added Tax and, if applicable, the applicable tax rate.

The DGT's ruling

Leasing to an intermediary company is subject to and not exempt from VAT at 21% because the lessee performs a subsequent transfer in the course of a business activity. If the property is intended for residential use without hotel services, the operation would be exempt. The change of use from development to leasing may constitute self-supply of goods subject to VAT if there are distinct sectors of activity.

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