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V3301-16 13 July 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entidad urbanística de conservación

Maintenance services for public spaces provided by urban development entities are exempt from VAT

A query was raised regarding whether urban development maintenance entities must apply VAT to their services and whether they can deduct the tax from their expenses. The DGT has determined that the maintenance of public domain and public use spaces is exempt, whereas the maintenance of private spaces is not.

The question raised

Possibility of deduction of the expenses incurred by the urban development maintenance entity.

The DGT's ruling

The provision of services for the maintenance of urban development works in public domain and use open spaces is exempt under Article 20.One.12 of Law 37/1992. This exemption does not apply to the maintenance of private domain and use spaces, nor to services other than those specified by the Supreme Court. As these are exempt operations, the services acquired by the entity for these activities do not generate a right to deduction. The exemption under Article 20.One.12 cannot be waived.

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