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V0467-19 1 March 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · arrendamiento de local

Unclaimed estates or heirs must declare and settle VAT on commercial premises leases

A query was raised regarding who is responsible for declaring VAT on a commercial lease following the death of the landlord. The DGT has ruled that the landlord is considered a business owner and that tax obligations are transferred to the heirs or the unclaimed estate.

The question raised

Person liable for the declaration and payment to the Public Treasury of the Value Added Tax corresponding to said lease.

The DGT's ruling

The lessor of an asset is a businessperson or professional and the lease of a business premises is subject to VAT. Pending tax obligations are transferred to the heirs or, while the estate is undistributed, to its representative. In the latter case, the settlements shall be made in the name of the undistributed estate.

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