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V0531-22 17 March 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · no sujeción

Transfer of a hospitality business exempt from VAT if it constitutes an autonomous economic unit

A query was raised regarding whether the transfer of a hospitality business, including furniture, is subject to VAT. The DGT indicates that the transaction will not be subject to VAT if the transferred elements form an autonomous economic unit capable of carrying out an activity in its own right.

The question raised

The question is raised regarding the liability for Value Added Tax of the aforementioned transfer.

The DGT's ruling

The transfer of a set of tangible and intangible elements shall not be subject to VAT if they constitute an autonomous economic unit within the transferor. In order not to be a mere assignment of assets, an organizational structure of material and human production factors must exist. The non-subjectivity applies regardless of whether the acquirer carries out the same activity, provided that it maintains the use for the development of a business activity.

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