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V0268-14 4 February 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · no sujeción

Transfer of an autonomous economic unit is not subject to VAT

A query was raised regarding the tax treatment of the transfer of a business in its entirety with the intention of continuing the activity. The DGT determines that if the transfer constitutes an autonomous economic unit, it is not subject to VAT.

The question raised

Treatment in the Tax.

The DGT's ruling

The transfer of a set of tangible and intangible elements that constitute an autonomous economic unit capable of carrying out an activity by its own means is not subject to VAT. For this non-subjectivity to apply, the set of elements must be sufficient to allow the development of an economic exploitation in an autonomous manner, excluding the mere assignment of assets.

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