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V1744-19 ·9 July 2019 ·consulta-vinculante Medium impact
Tax

Property tax (IBI) included in the sale price forms part of the VAT taxable amount

A company requested clarification on whether the Property Tax (IBI) included in the purchase price of a property should be integrated into the VAT taxable amount. The Directorate-General for Tax (DGT) ruled that it must, as any effective credit in favour of the seller constitutes part of the consideration.

In 5 key points

How it affects those involved

This ruling clarifies that local property taxes included in a real estate transaction price must be subject to VAT, as they are considered part of the total consideration paid to the seller.

Lifecycle

2019-07-09PublishedPublished 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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