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V0052-16 8 January 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

10% VAT rate applies to garage space if transferred alongside a dwelling in the same building

A taxpayer inquired about the VAT rate applicable to a garage space purchased exclusively, while another person purchases a dwelling at 50%. The DGT ruled that the reduced rate of 10% may be applied if the garage space and the dwelling are transferred in the same transaction and are located within the same building.

The question raised

Applicable tax rate.

The DGT's ruling

To apply the 10% rate to the transfer of parking spaces (maximum of two), these must be located in the same building as the dwelling and transferred jointly, that is, in the same act and simultaneously. Joint transfer is understood to be fulfilled if it is carried out at the same moment, being irrelevant whether they are documented in separate deeds or whether the ownership of the dwelling is distributed among different acquirers. If these requirements are not met, the parking space shall be taxed at the general rate of 21%.

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