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V0052-19 ·4 January 2019 ·consulta-vinculante Medium impact
Tax

Transfer of property to settle mortgage debt is subject to the reverse charge mechanism for VAT

A company has requested a ruling regarding the acquisition of a building under construction intended for leasing, which is subject to mortgages. The DGT has determined that the transfer of the property is independent of marketing services and that, since the price is used to settle the debt, the reverse charge mechanism applies.

In 6 key points

How it affects those involved

This ruling clarifies the application of the VAT reverse charge mechanism in transactions where property is transferred to satisfy mortgage obligations, distinguishing the property transfer from associated marketing services.

Lifecycle

2019-01-04PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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