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V1058-20 ·24 April 2020 ·consulta-vinculante Medium impact
Tax

Transfer of groundwater rights subject to 21% VAT

A company has requested a ruling on whether the sale of groundwater rights is subject to VAT and when the tax liability arises. The DGT has determined that the transaction is subject to the tax and that the tax point occurs upon the formalisation of the sale and purchase agreement, subject to the corresponding administrative authorisation.

In 6 key points

How it affects those involved

This ruling clarifies the VAT treatment for the transfer of groundwater rights, establishing that such transactions are taxable and defining the specific moment of tax accrual.

Lifecycle

2020-04-24PublishedPublished 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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