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Practical manual VAT 2024.

Operations treated as provision of services

For tax purposes, self-consumption of services is considered to be the provision of services for a fee.

The following operations without compensation constitute -consumption of services:

  1. Transfers of assets and rights from business or professional assets to personal assets that are not deliveries of goods.

  2. The total or partial application of assets of the business or professional assets to private use or to purposes other than business or professional activity.

  3. Other services provided free of charge, provided they are carried out for purposes other than business or professional activity.

Examples:

  • The owner of a hotel who uses rooms as a family residence.

  • The owner of a garage who repairs a vehicle for his neighbor without compensation.

  • Free service for people who have a pass or title for free access and seating to shows.