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V2960-18 ·14 November 2018 ·consulta-vinculante Medium impact
Tax

Sale of developed plots subject to VAT if the seller acts as a business with intent to sell

A query was raised regarding whether the transfer of land resulting from development by a Compensation Board is subject to VAT. The DGT ruled that business status is acquired when development costs are incorporated into the land, provided there is an intention to sell.

In 6 key points

How it affects those involved

This ruling clarifies the criteria for determining VAT liability in land development transactions, specifically focusing on the intent to trade and the incorporation of costs.

Lifecycle

2018-11-14PublishedPublished 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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