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V0454-15 5 February 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · devengo

No VAT liability on property transfer where possession has already been delivered

The DGT confirms that VAT arises when a property is made available to the buyer, and if possession has already been delivered, the deed does not trigger new VAT.

The question raised

Question posed: Accrual of Value Added Tax.

The DGT's ruling

The accrual of VAT on the supply of goods occurs, as a general rule, when the good is placed at the disposal and possession of the acquirer. If a public deed is executed, the placement into possession is understood to have occurred at that moment, unless the deed indicates otherwise. In this case, as the delivery of the dwelling occurred prior to the execution of the deed, the tax cannot be charged upon the adjudication.

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