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A British entity inquired whether the transfer of all assets from its Spanish branch to a new company constitutes a transaction not subject to VAT. The Directorate General for Taxes (DGT) ruled that, as all assets, liabilities, and the organisational structure are transferred, the criteria for non-subjectivity are met.
This ruling clarifies that the transfer of a complete business unit, including its organisational structure, falls outside the scope of VAT, providing legal certainty for cross-border restructuring involving Spanish branches.
The tax team reviews your specific situation.
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