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V0280-20 7 February 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · autoconsumo de servicios

Free transfer of commercial premises to a related daughter is subject to VAT as self-consumption of services

A married couple renting commercial premises consult whether they can transfer them free of charge for their daughter's professional activity. The DGT rules that, as they are business owners, the free transfer is considered self-consumption of services subject to VAT.

The question raised

Implications that the aforementioned operation would have for Value Added Tax.

The DGT's ruling

The transfer of use of an asset from the business assets to a third party without consideration is considered self-consumption of services. Where a relationship by kinship exists, the tax base shall be the normal market value if the circumstances of Article 79 are met. In other cases of self-consumption, the tax base shall be the cost of providing the services, including the depreciation of the assets transferred. The operation requires the charging of the tax and its self-assessment.

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