Skip to content
Back to index
V0831-18 26 March 2018 · SG de Impuestos sobre el Consumo Criterion in force
ITPAJD · transmisiones patrimoniales onerosas

Purchasing movable property from private individuals is subject to ITPAJD, not VAT

A second-hand watch trading company has requested clarification on which tax applies when purchasing goods from private individuals. The DGT has clarified that acquisitions from private individuals are subject to ITPAJD rather than VAT, as VAT is exclusive and depends on the status of the transferor.

The question raised

Obligation to submit a tax return for the Tax on Onerous Transfers of Property in the corresponding Autonomous Community for each good acquired from a private individual.

The DGT's ruling

The application of VAT excludes the modality of onerous transfers of property under the ITPAJD. To determine the applicable tax, it must be verified whether the transferor is an entrepreneur or professional in the exercise of their activity; if they are a private individual, the operation is subject to the ITPAJD. In the case of movable property, the tax rate shall be 4 per 100, unless the Autonomous Community has established a different one. The amount of ITPAJD quotas paid by the acquirer shall be considered a higher purchase price for calculating the profit margin under the special VAT regime for used goods.

Book your free first meeting