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V0714-25 15 April 2025 · SG de Impuestos sobre el Consumo Criterion in force
IVA · transmisión de edificaciones

Transfer of industrial ships subject to demolition for new development is not VAT-exempt

A company asks whether the sale of industrial buildings on urban land is VAT-exempt, as the buyer will demolish them to build a hotel. The DGT responds that the transaction is taxable, as the conditions for exemption due to prior demolition for new development are not met.

The question raised

Whether the transfer of said warehouses would be subject to, and if applicable, exempt from, Value Added Tax.

The DGT's ruling

The delivery of buildings is not exempt if they are subject to demolition prior to a new urban development. As the transfer is taxable and not exempt, the exemption for land containing buildings subject to tax is also not applicable. Therefore, the operation must be taxed at the general VAT rate.

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