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V0561-20 9 March 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · contraprestación

Refund of investments upon termination of concession subject to VAT as consideration for goods

A company enquired whether the amount to be received for unamortised investments following the termination of a public works concession contract was subject to VAT. The DGT ruled that, as these assets pass to the ownership of the granting authority, the payment does not constitute compensation but rather consideration for the supply of goods, and must therefore be taxed.

The question raised

Whether the payment of said amount is subject to Value Added Tax.

The DGT's ruling

The payment for investments made in a concession that become part of the assets of the granting entity upon termination of the contract constitutes the consideration for the works and goods performed. Therefore, it is not an exempt indemnity, but rather an operation subject to VAT. The applicable rate shall be the general rate in force at the time of accrual, unless there are reduced rates applicable to the goods delivered.

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