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V0334-16 27 January 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entrega de bienes

VAT accrual occurs when the property is placed in the purchaser's possession in deferred access contracts

A query was raised regarding when VAT should be taxed in a contract for deferred access to the ownership of social housing. The DGT ruled that the tax accrues at the moment the property is placed in the possession of the purchaser.

The question raised

Taxation of the transaction for Value Added Tax purposes.

The DGT's ruling

Deferred access to ownership contracts are classified as sale and purchase agreements with a retention of title clause. Therefore, the VAT accrual occurs when the dwelling is placed in the possession of the acquirer, regardless of whether payment is made in installments or whether the public deed is executed after the consideration has been satisfied.

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