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A vehicle dealership has requested clarification on whether purchasing vehicles from public administration auctions is subject to VAT or ITPAJD. The DGT has ruled that the transaction is subject to VAT if the seller is a businessperson or professional and the vehicle is used for their business activity; otherwise, it is subject to ITPAJD.
This ruling clarifies the tax regime applicable to vehicles acquired through administrative auctions, distinguishing between VAT and transfer tax based on the seller's professional status and the asset's business use.
The tax team reviews your specific situation.
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