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V0706-14 13 March 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · devengo

IVA devenged on property acquisition via mortgage enforcement at adjudication decree notification

The DGT confirms that VAT arises upon notification to the buyer of the judicial decree of adjudication in property acquisitions through mortgage enforcement.

The question raised

Question raised: The moment at which Value Added Tax accrues.

The DGT's ruling

The accrual of VAT in the acquisition of real estate in mortgage foreclosure proceedings occurs when the acquirer becomes aware of the adjudication decree. Specifically, the taxable event occurs at the moment the judicial testimony of said decree is notified to the successful bidder. This is based on the interpretation of the making of the asset available and the jurisprudence of the Supreme Court.

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