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V0095-22 21 January 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · unidad económica autónoma

Transfer of real estate without an organisational structure is subject to VAT

Companies have queried whether the transfer of real estate assets without subrogating the existing management contract constitutes an operation not subject to VAT. The DGT ruled that, as no structure of human or material resources capable of supporting an autonomous activity is being transferred, the operation is subject to the tax.

The question raised

Whether the transfer of real estate assets under the consulted conditions is an operation subject to Value Added Tax.

The DGT's ruling

For the transfer of a set of elements to be not subject to VAT, they must constitute an autonomous economic unit capable of carrying out a business activity by its own means at the premises of the transferor. If the transfer of real estate is not accompanied by an organizational structure of material and human production factors, it is considered a mere transfer of assets. In this case, the decision not to subrogate the management contract implies that only real estate assets and liabilities are transferred without the means to carry out a business activity.

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