Skip to content
V0663-18 ·13 March 2018 ·consulta-vinculante Medium impact
Tax

Transfer of a small power plant exempt from VAT if it constitutes an autonomous economic unit

A company has requested clarification on whether the transfer of a small power plant, including its equipment and water use licence, is subject to VAT. The Directorate-General for Taxes (DGT) has ruled that the transaction is not subject to VAT provided that the transferred elements constitute an autonomous economic unit capable of conducting an activity in its own right.

In 6 key points

How it affects those involved

This ruling clarifies the conditions under which the transfer of assets can be treated as a transfer of a business undertaking, thereby avoiding VAT liability if the assets form a functional economic unit.

Lifecycle

2018-03-13PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

Does this provision affect you?

The tax team reviews your specific situation.

Talk to the tax team
This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
Email
Contact