Skip to content
Back to index
V0144-14 23 January 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeción

Purchase of a plot of land from non-business individuals is not subject to VAT

A company has enquired whether the acquisition of a plot of land from individuals who are not business owners or professionals is subject to VAT. The Directorate-General for Taxes (DGT) has ruled that the transaction is not subject to the tax, as it is not carried out by a business owner or professional.

The question raised

Subjectivity to Value Added Tax of the transaction.

The DGT's ruling

The delivery of a plot of land carried out by individuals who do not hold the status of entrepreneurs or professionals is not subject to Value Added Tax. As the transaction is not subject to tax, the exemptions provided in Article 20 of Law 37/1992 do not apply, nor is it possible to waive them. The transaction may be subject to Transfer Tax and Stamp Duty.

Book your free first meeting