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A query is made as to whether the sale of a vehicle originating from the Canary Islands, Ceuta, or Melilla requires the submission of Form 620 for Transfer Tax. The DGT responds that the first transfer carried out by an entrepreneur is subject to VAT and not to Transfer Tax.
Question posed: Obligation to submit and settle the Transfer Tax (Form 620) in the following two cases:
The supply of a good by a taxable person for VAT is not subject to onerous transfers for Transfer Tax, except for real estate exceptions. The first transfer of a vehicle by a commercial entrepreneur shall always be subject to VAT. Transfer Tax shall only apply to subsequent transfers carried out by the first acquirer who is not an entrepreneur or professional.
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