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V0742-20 7 April 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · no sujeción

Transfer of an insurance branch is not subject to VAT if it constitutes an autonomous economic unit

An insurance entity has requested clarification on whether the transfer of its Spanish branch to another insurance company is exempt from VAT. The DGT has ruled that the transaction is not subject to tax provided that the transferred elements allow for the conduct of an autonomous economic activity.

The question raised

Whether the operation of transferring the insurance business can be considered an operation not subject to Value Added Tax.

The DGT's ruling

The transfer of a set of tangible and intangible elements is not subject to VAT when they constitute an autonomous economic unit capable of carrying out a business activity by its own means. In this case, as insurance policies and the material and human resources for their management are included, it is considered that the necessary organizational structure for non-subjectivity exists.

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