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V5465-26 11 August 2026 · SG de Impuestos sobre el Consumo Criterion in force
IVA · cesión de uso

Leasing of building facades for advertising by homeowners' associations is subject to VAT

A renovation company enquired whether the leasing of an advertising banner on a homeowners' association's facade is subject to VAT. The DGT ruled that, although homeowners' associations are not entrepreneurs by default, when they carry out activities such as leasing spaces, they act as taxable persons and must charge the tax.

The question raised

Liability for Value Added Tax regarding said operation.

The DGT's ruling

The assignment of use of the facade for the placement of an advertising banner is a provision of services subject to the general VAT rate. If the consulting company acts as an intermediary in its own name, it must provide the service to the advertising entity and receive it from the homeowners' association, whereby both parties must charge the tax via invoice. The homeowners' association acquires the status of taxable person by carrying out this business activity of leasing spaces.

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