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V0782-23 3 April 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · empresario o profesional

One-off sale of a whisky barrel is not subject to VAT and does not require an invoice

An individual has enquired whether purchasing a whisky barrel to resell it three years later would classify them as a business owner and if the sale is subject to VAT. The DGT has ruled that, as it is a one-off transaction without economic activity, it is not subject to VAT and there is no obligation to issue an invoice.

The question raised

1.) Whether, by performing the aforementioned transaction, the individual must be considered an entrepreneur or professional, and, if so, whether the subsequent sale of the whisky subject to this inquiry must be taxed under Value Added Tax.

The DGT's ruling

The transaction is not subject to VAT because it is carried out on an occasional, isolated basis and without intention of continuity, outside of a business activity. As the individual does not hold the status of entrepreneur or professional, they are not required to issue an invoice. The difference between the acquisition value and the transfer value shall constitute a capital gain or loss for Personal Income Tax purposes.

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