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V0549-18 26 February 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · venta forzosa

Delivery of plots in forced sales is subject to 21% VAT and the successful bidder may issue the invoice

A company that has been awarded plots in a forced sale procedure has requested a ruling on the application of VAT and Transfer Tax (ITP/AJD). The Directorate General for Taxes (DGT) has determined that the delivery of the plots is subject to VAT at the standard rate of 21% and that the successful bidder is authorised to issue the invoice on behalf of the transferor.

The question raised

The consultant raises the following questions:

The DGT's ruling

The delivery of plots by a business transferor is subject to VAT at 21%, with the tax base comprising the amount to the transferor, the amount destined for the municipality, and ancillary expenses. The amount destined for the municipality is compensatory in nature and is not subject to VAT. The business successful bidder is authorized to issue the invoice, charge the tax, and submit the tax return on behalf of the taxable person.

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