Skip to content
Back to index
V0280-22 15 February 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · herencia yacente

Sale of villas via an unadministered estate subject to VAT as they do not constitute an autonomous economic unit

The heirs of a real estate developer have consulted whether the sale of two villas following the acceptance of an inheritance is subject to VAT. The DGT has determined that the transfer is a mere disposal of assets subject to the tax, as no organisational structure or economic unit is being transferred.

The question raised

Taxation of the sale of detached houses under Value Added Tax.

The DGT's ruling

The transfer of detached houses by the dormant estate does not constitute an autonomous economic unit, but rather a mere assignment of assets subject to VAT. As these are the first deliveries of buildings following their development, the exemption under Article 20.One.22º does not apply. The reduced rate of 10% shall apply if the dwellings possess a certificate of habitability or a first occupancy license and are suitable for use as dwellings; otherwise, the general rate of 21% shall apply.

Book your free first meeting