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V0569-20 10 March 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeción al impuesto

Sale of a motorcycle not used for business purposes is not subject to VAT

A coffee bar owner enquired whether the sale of a motorcycle, previously acquired through a leasing agreement, was subject to VAT. The Tax Agency ruled that because the vehicle was no longer allocated to the business following a regularisation of deductions, the sale is not subject to the tax.

The question raised

Whether the transfer of the motorcycle would be subject to Value Added Tax.

The DGT's ruling

The supply of goods is subject to VAT when carried out by entrepreneurs or professionals in the course of their business or professional activity. If the motorcycle has not been assigned to any activity nor to the business or professional assets of the taxable person, the supply constitutes an operation not subject to VAT. In this case, the operation shall be subject to Transfer Tax.

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