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V0219-22 9 February 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · segundas entregas de edificaciones

Sale of sports facilities used for over two years may be subject to or exempt from VAT

An autonomous body has requested a ruling on whether the sale of sports facilities (a former weapons factory) is subject to or exempt from VAT. The DGT has determined that, as the facilities were used by the Ministry of Defence for more than two years, the transaction constitutes an exempt second supply of buildings.

The question raised

Whether the sale will be subject to and, where applicable, exempt from Value Added Tax.

The DGT's ruling

The entity holds the status of entrepreneur or professional if it organizes means to carry out an economic activity for consideration. The transfer of facilities and accessory land is considered a second delivery of buildings, as the real estate was used uninterruptedly by its owner or holders of real rights for a period equal to or greater than two years. Therefore, the operation is subject to but exempt from VAT, and the taxable person may waive said exemption under the legal requirements.

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