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V0351-25 19 March 2025 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Delivery of plots for parks, gardens or public roads exempt from VAT

A municipality asks whether the acquisition of two plots for parks, gardens and public roads is subject to or exempt from VAT. The DGT determines that while delivery of buildable land is usually subject to VAT, specific designation for public use such as parks or roads ensures exemption.

The question raised

Whether said transfer shall be subject to and, where applicable, exempt from Value Added Tax.

The DGT's ruling

The supply of buildable land (plots or land with a license) is subject to and not exempt from VAT by express exclusion. However, if the land is intended exclusively for public parks and gardens or for road surfaces for public use, the operation is subject to but exempt from the tax. This criterion applies regardless of the land's classification if such intended use is met.

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