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V3691-16 ·5 September 2016 ·consulta-vinculante Medium impact
Tax

Transfer of furniture and goodwill without organisational structure is subject to VAT

A taxpayer inquired whether the transfer of their business (furniture, machinery, and goodwill) is exempt from VAT as an economic unit. The DGT ruled that, due to the absence of an organisational structure comprising material and human factors, the transaction is considered a mere transfer of assets subject to tax.

In 6 key points

How it affects those involved

This ruling clarifies that for a business transfer to qualify as an exempt economic unit, it must possess a cohesive organisational structure; otherwise, it is treated as a standard taxable sale of assets.

Lifecycle

2016-09-05PublishedPublished 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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