Skip to content
Back to index
V0443-26 27 February 2026 · SG de Impuestos sobre el Consumo Criterion in force
IVA · condición resolutoria

Sale of urbanised plots by a public entity is VAT liable and allows imposable base correction

A Council asks whether the sale of industrial plots with a contingent clause is subject to VAT and how to treat the retention of part of the price if the condition is met. The DGT responds that the transaction is VAT liable and that the resolution of the contract allows modification of the taxable base.

The question raised

Whether the transfer of the plots is subject to Value Added Tax. Subjectivity, where applicable, to Value Added Tax of the portion of the price that, should the resolutory condition occur, will be retained by the consulting entity.

The DGT's ruling

The transfer of urbanized plots with industrial use by a public entity is subject to VAT when carried out in the course of a business activity. If a resolutory condition is met that alters the price or renders the transaction void, the taxable base must be modified pursuant to Article 80.Two of the VAT Law. The taxable person must rectify the output tax through a corrective invoice within four years from the occurrence of the circumstances motivating the modification.

Book your free first meeting