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V0215-16 21 January 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · unidad económica autónoma

Acquisition of social housing by a developer may be subject to 4% VAT depending on its characteristics

An entity has requested a ruling regarding the VAT and ITPAJD (Transfer Tax) implications of acquiring social housing, garages, and storage rooms. The DGT clarifies that the transaction does not constitute a transfer of a business unit, but rather a supply of goods subject to VAT at reduced rates depending on the housing classification.

The question raised

1.- Liability for Value Added Tax of the operation subject to consultation.

The DGT's ruling

The transfer of real estate does not constitute an autonomous economic unit if it is not accompanied by an organizational structure of material and human factors. The delivery of social housing by its developer shall be taxed at 4% VAT if it meets the parameters of surface area, price, and income. Annexed garages and storage rooms shall be taxed at 10% VAT if they are transferred jointly and are located on the same plot. Regarding ITPAJD, the operation shall be taxed via transfer tax if VAT is exempt, or via documented legal acts if VAT is applicable.

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