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A developer sought clarification on whether the sale of properties built in 2004, following a period of inactivity, was subject to or exempt from VAT. The DGT ruled that the company retains its status as a taxable person as long as its assets are not liquidated, and that the sale of said properties constitutes a first supply subject to the tax.
This ruling clarifies that inactivity does not automatically strip a developer of their taxable status, ensuring that the sale of existing stock remains subject to VAT rather than being treated as a sale of assets.
The tax team reviews your specific situation.
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