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V0404-26 26 February 2026 · SG de Impuestos sobre el Consumo Criterion in force
IVA · renuncia a la exención

It is possible to renounce VAT exemption on the purchase of already leased commercial premises

A company asked whether it could renounce VAT exemption when buying already leased commercial premises. The DGT explains that, as the buyer is a business entity entitled to deduction, renunciation allows the application of the passive investor's investment.

The question raised

For the purposes of Value Added Tax, it is questioned whether the waiver of the Value Added Tax exemption pursuant to Article 20, paragraph Two, of Law 37/1992 would have been applicable.

The DGT's ruling

The sale of real estate used for the activity of leasing premises constitutes a supply of goods subject to VAT. If the acquirer is a businessperson or professional entitled to deduction due to the use of the asset, they may opt for the waiver of the exemption under Article 20.One.22. The in case of such waiver, the reverse charge mechanism applies and the acquirer must settle the tax. The applicable rate would be the general rate of 21 percent.

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