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V0676-20 3 April 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Properties without a first occupation licence subject to 21% VAT unless exempt

A company has requested clarification on the VAT rate applicable to the purchase of four new-build single-family homes from Sareb that lack a first occupation licence. The DGT explains that the transaction may be exempt if it constitutes a second or subsequent delivery; however, if VAT is applicable, the rate will depend on whether the property is deemed fit for residential use.

The question raised

Applicable tax rate for the delivery of said dwellings for Value Added Tax purposes.

The DGT's ruling

If the delivery of the building is a second or subsequent delivery of a completed building, it shall be exempt from VAT, except in cases of legal exclusion. If the operation is not exempt, the reduced rate of 10% shall apply only if the property possesses a certificate of habitability or a legally issued first occupancy license and is objectively capable of being used as a dwelling. Otherwise, the general rate of 21% shall apply.

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