VAT treatment for the parking spaces provided by the company to employees


Binding tax ruling V1664-15 issued by the Spanish General Tax Directorate (DGT) on May 11, 2015.

This issue is related to a company aimed to the sale of informatics products that for the development of their business activity leases the following immoveable properties:

– Office buildings which include parking spaces, used for its business activity, which are leased as single unitary property. The parking lots can be used by some employees.

– Parking spaces located in the city centre of several Spanish cities, in areas of very difficult public parking. These spaces are leased individually not linked to any property and are exclusive of certain sales agents of the company which can only be used at work schedules.

In the case of spaces parking leased unitarily with office building, if the company chooses to treat capital goods used both for business purposes and for private purposes as coming from business, the VAT paid on the acquisition of those assets it is, in principle wholly and immediately deductible.

But, in case the company deducted these VAT quotas, the use of the parking lots for the private purposes of the taxable person or his staff or for purposes unrelated to its business activity is treated as a supply of services for consideration under Articles 7.7º and 12.3º of the Spanish Law 37/1992 of VAT:

Art 7.7º

“Shall not be subject to VAT … transactions included in Article 12, number 3 ° of this Law if the taxpayer is limited to providing the same service received from third parties and had not deducted the VAT incurred in receiving the service”.

 Art 12.3º

“It is considered treated as supplies of services for consideration the internal consumption of services.

For the purposes of this tax will be self-consumption of services the following transactions performed without consideration:

Other services provided free of charge by the taxable person not mentioned in the preceding paragraphs of this article, if carried out for purposes other than those of the business or professional activity.”

On the other hand, in relation to parking spaces for commercial use, would not appreciate that private employee needs are met and that the organization of parking by the employer is done for purposes that are not unrelated to the company, and personal benefit that the employee could get from this is only incidental, so it would be the provision of services free of charge for their own purposes of the business activity of the company and it is not subject to VAT and not restricts the right to deduct.

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CV 1464 15

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