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V0014-18 9 January 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · no sujeción

Transfer of real estate assets is not subject to VAT if an autonomous economic unit is transferred

The applicant asks whether the contribution of real estate assets and their management resources to a company is subject to VAT. The DGT rules that the transaction is not subject to VAT if the transferred elements constitute an autonomous economic unit capable of carrying out the activity on its own.

The question raised

Taxation under Value Added Tax.

The DGT's ruling

For the transfer to be not subject to tax, the elements must constitute an autonomous economic unit within the transferor, capable of carrying out a business or professional activity by its own means. In this case, the transfer of real estate businesses (sale and lease) together with the management resources constitutes a non-subject operation. If the transfer is carried out in stages, it must be framed within the same contract to maintain the non-subject status. The acquirer is subrogated into the position of the transferor regarding the application of deduction rules.

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