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Public Functions: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Stable position High confidence 14 rulings · 2014–2025

Current position

The VAT exemption for the acquisition, leasing, or chartering of aircraft requires that these be used exclusively by public law entities in the performance of their functions. If the aircraft provides services to third parties, the exemption is not applicable. For drones to qualify as aircraft under this exemption, they must meet the technical definition of propelled aerodynes under heading 88.02 of the Customs Tariff.

The DGT's position remains constant regarding the application of exemptions for public entities, focusing its analysis on the nature of the function and the exclusivity of use. A specialization is observed in the interpretation of the aircraft exemption, specifying that chartering by companies for public entities does not extend the exemption to provisioning services. The doctrine confirms that the activities of Central Banks in the exercise of public authority do not constitute business activities subject to VAT.

Turning points

  1. V1428-20

    Specifies that the aircraft exemption does not extend to provisioning products if the purchaser is the chartering company and not the public entity.

Analysis based on 11 of 14 rulings with a stated position. Updated 26 September 2026.

Rulings on this topic

14

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