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V2832-18 ·26 October 2018 ·consulta-vinculante Medium impact
Tax

Free transfer of electrical installations to a supplier is not subject to VAT under specific regulatory conditions

A homeowners' association has enquired whether the free transfer of electrical installations, carried out by them, to a supply company is subject to VAT. The Directorate General for Taxes (DGT) has ruled that the transfer is not subject to tax, as it constitutes a mandatory transfer required by sector-specific legislation.

In 6 key points

How it affects those involved

This ruling provides legal certainty for property owners and associations, confirming that mandatory transfers of infrastructure to utility providers do not trigger VAT liabilities.

Lifecycle

2018-10-26PublishedPublished 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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