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V0015-14 10 January 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · arrendamiento de bienes inmuebles

Leasing of rural property and agricultural buildings is exempt from VAT

An agricultural entrepreneur has requested a ruling regarding VAT liability on the transfer of livestock, the leasing of their farm and buildings, and the future transfer of the property. The DGT has determined that the leasing of the farm and its agricultural buildings is exempt, whereas the transfer of the farm is subject to VAT, albeit with an applicable exemption.

The question raised

Liability and exemption from Value Added Tax regarding the lease and, where applicable, the future transfer of the estate.

The DGT's ruling

The lease of the rural estate together with its agricultural buildings is exempt from VAT pursuant to Article 20.One.23º of Law 37/1992. However, the independent lease of the buildings is subject to the general rate of 21%. The transfer of the estate shall be subject to VAT, but the exemption under Article 20.One.20º for rural land and buildings indispensable for agricultural exploitation shall apply.

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