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V0413-18 19 February 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · concesión administrativa

Transfer of an administrative works concession is a supply of goods subject to VAT but exempt

A query was raised regarding whether the transfer of an administrative concession to exploit an artificial beach, swimming pool, and promenade is subject to VAT. The DGT determines that it constitutes a supply of goods subject to the tax, but qualifies for the exemption for the second supply of a building.

The question raised

Liability for Value Added Tax regarding the aforementioned transfer.

The DGT's ruling

The transfer of the concession constitutes a supply of goods subject to VAT provided that the powers of an owner are attributed to the acquirer. As they involve works such as swimming pools or recreational facilities, they are considered buildings. Therefore, if the original concessionaire was the developer and has operated them for more than two years, the operation is exempt as it is a second supply of a building. However, the acquirer may waive the exemption if they are entitled to the deduction.

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