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V0364-22 24 February 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeción

Transfer of building land subject to VAT if the transferor is a business owner

A private individual has enquired about whether the transfer of land involving a leasehold right and a commercial building is subject to VAT. The DGT has determined that the transaction is subject to the tax if the land is building land and the transferor is acting as a business owner.

The question raised

Subjectivity and, where applicable, exemption from Value Added Tax regarding the transfer of the land subject to this inquiry.

The DGT's ruling

The transfer of the land shall be subject to VAT if the transferor holds the status of entrepreneur or professional and the land is classified as buildable. The subrogation into the lease agreement by the acquirer, without specific consideration, does not constitute an operation subject to the tax. The classification as buildable depends on whether the land is a plot or holds an administrative license for construction.

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