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V1529-21 ·24 May 2021 ·consulta-vinculante Medium impact
Tax

Transfer of land used for business activities may be subject to VAT and allow for input tax deduction

A commercial entity enquired whether the transfer of two urban plots of land, registered as stock, was subject to VAT and if the VAT incurred upon their acquisition could be deducted. The DGT ruled that the transfer is subject to VAT if the land is used for business purposes and that deduction is permitted provided four years have not elapsed.

In 6 key points

How it affects those involved

This ruling clarifies the VAT treatment for land transfers held as stock, confirming that business use triggers VAT liability and potential deduction rights.

Lifecycle

2021-05-24PublishedPublished 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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