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V0060-16 12 January 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · derecho de traspaso

Granting a business transfer right is subject to VAT as a provision of services

A query was raised regarding whether payment for the right to take over a business premises is subject to VAT. The DGT ruled that granting such a right constitutes a provision of services subject to the tax, regardless of whether the right is actually exercised.

The question raised

Whether the transfer of a business is subject to VAT.

The DGT's ruling

The granting of a transfer right over a business constitutes a provision of services subject to VAT, as it does not involve the transfer of the power of disposal over the business, but rather the establishment of a right in favor of the beneficiary. The amount paid for this right forms part of its own taxable base and not that of the subsequent transfer. If the right is exercised and an autonomous economic unit is transferred, such transfer of business assets shall not be subject to tax.

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