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V0572-24 9 April 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · segunda entrega de edificaciones

Transfer of an industrial building previously acquired may be considered a VAT-exempt second delivery

A company asked whether the sale of an industrial building on which it carried out expansion works constituted a first or second delivery of construction. The DGT responded that, having acquired the building already constructed, it constitutes a VAT-exempt second delivery.

The question raised

The purpose is to determine the taxation, for Value Added Tax purposes, of the aforementioned operation. Specifically, whether it can be treated as a first or second delivery of a building, for the purpose of applying the waiver of exemption and the reverse charge mechanism provided for in Law 37/1992.

The DGT's ruling

The transfer of the industrial warehouse is considered a second delivery of buildings, as the taxpayer acquired it from a third party with the construction already completed. Therefore, the operation is exempt from VAT pursuant to Article 20.One.22 of Law 37/1992. The taxable person may waive this exemption if the acquirer is a taxable person with the right to deduction, which would trigger the reverse charge mechanism.

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