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A company has requested clarification on whether the purchase of industrial buildings from an inactive entity is subject to or exempt from VAT. The DGT has ruled that the transfer is taxable but exempt, as it does not constitute a first supply since the buildings had been used by the owner for more than two years.
This ruling clarifies the VAT treatment for the sale of industrial assets by inactive companies, confirming that long-term use prevents the transaction from being treated as a first supply.
The tax team reviews your specific situation.
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