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V3334-20 11 November 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · refacturación de gastos

Re-invoicing of leases to a Joint Venture is taxed at 21% if not treated as disbursements

An entity managing housing programmes has queried whether VAT exemption applies when re-invoicing leases to a Joint Venture (UTE) or when acting as the owner. The DGT has ruled that the re-invoicing of expenses constitutes a service subject to 21% VAT if the requirements for disbursements are not met.

The question raised

Clarification of the binding ruling of February 26, 2020, inquiry V0452-20, and specifically, whether the conclusions contained therein are extendable to the described operations.

The DGT's ruling

The rebilling of a lease in which the entity acts on its own behalf is not a payment on behalf of a third party, but rather a provision of services subject to the general rate of 21%. If the entity acts as an intermediary on its own behalf, the exemption under Article 20.One.23.b) does not apply to the first lease (from the owner to the entity), but it does apply to the second (from the entity to the UTE) and to that from the UTE to the final consumers. If the entity is the owner and leases to the UTE, the exemption is applicable if the UTE is a managing entity of housing programs.

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