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A company asked whether welding and assembly work for a hydroelectric power station is subject to VAT in Spain. The DGT states that services directly related to a property are located where the property is situated.
Question raised: Location of the described operations. Classification of the power plant as a building.
Hydroelectric power plants are considered buildings if they are permanently attached to the ground and are capable of autonomous use. Welding and assembly services, when performed on the real estate, maintain a sufficiently direct relationship with it to be considered services related to real estate. Therefore, they are located in the territory where the real estate is situated pursuant to Article 70.One.1º of the VAT Law.
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