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V0572-20 10 March 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · transmisión de valores

Transfer of securities may be taxed as a property transfer if intended to evade VAT

The inquiry concerns the VAT implications of acquiring a share package in an entity whose assets are predominantly real estate. The DGT explains that while the transfer of securities is typically exempt, if it occurs in the secondary market with securities not admitted to trading and there is an intent to evade tax, it will be taxed as a transfer of real estate.

The question raised

Consequences regarding Value Added Tax of the application of article 314 of the Recast Text of the Securities Market Law.

The DGT's ruling

The transfer of securities is exempt from VAT, unless the securities are not admitted to trading on an official secondary market and the intention is to evade real estate transfer tax. In such cases, the transaction shall be treated as a transfer of real estate. The Administration must prove the intent to evade, although there are scenarios where it is presumed if control is obtained over an entity whose assets consist of at least 50% real estate not used for business activities.

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