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V2148-22 ·13 October 2022 ·consulta-vinculante Medium impact
Tax

Sale of a property built for an administrator's personal use is not subject to VAT

A company built a property for its administrator's holiday use without conducting any business activity. The DGT has ruled that the sale is not subject to VAT due to the lack of business status, and in such cases, the transaction will be subject to Property Transfer Tax.

In 6 key points

How it affects those involved

This ruling clarifies that the absence of business activity prevents a transaction from being subject to VAT, shifting the tax burden to Property Transfer Tax.

Lifecycle

2022-10-13PublishedPublished 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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