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V0258-24 ·29 February 2024 ·consulta-vinculante Medium impact
Tax

Sale and leaseback of a building is subject to VAT and does not constitute an economic unit

A company has enquired whether the purchase of a building intended for a retirement home, to be subsequently leased back to the seller, is exempt from VAT as a transfer of an economic unit. The DGT has ruled that the transaction is subject to VAT because the building alone does not constitute an autonomous economic unit.

In 6 key points

How it affects those involved

This ruling clarifies that sale and leaseback transactions involving single assets do not qualify for the exemption related to the transfer of an economic unit, meaning VAT must be applied unless other specific exemptions or mechanisms like the reverse charge apply.

Lifecycle

2024-02-29PublishedPublished 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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