Back to index
V0127-18 23 January 2018 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
OTRO · comunidad de bienes

Transfer of a pharmacy business to a community of property may be exempt from VAT and ITPAJD

A pharmacist has requested clarification regarding the tax implications of transferring ownership from an individual to a community of property with his spouse. The DGT indicates that the transaction may not be subject to VAT if it constitutes an autonomous economic unit, and could potentially be exempt from ITPAJD.

The question raised

Taxation in VAT, ITPAJD, and IRPF of the operation intended to be carried out.

The DGT's ruling

In ITPAJD, the formation of the community of property is subject to tax, but the exemption for the formation of companies could potentially apply. In VAT, the transfer shall not be subject to tax if the elements constitute an autonomous economic unit capable of carrying out the activity. In IRPF, the transfer of inventory generates income from economic activity, whereas fixed assets and goodwill may generate capital gains or losses depending on their ownership.

Book your free first meeting