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V0835-22 19 April 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · promotor inmobiliario

Sale of completed properties by a developer constitutes a first supply subject to VAT

A developer sought clarification on whether the sale of properties built in 2004, following a period of inactivity, was subject to or exempt from VAT. The DGT ruled that the company retains its status as a taxable person as long as its assets are not liquidated, and that the sale of said properties constitutes a first supply subject to the tax.

The question raised

Whether the sale of the properties consulted will be subject to, and if applicable, exempt from, Value Added Tax.

The DGT's ruling

The status of the taxable person is maintained until the effective cessation of activity and the liquidation of the business assets occur. The delivery of completed buildings by a developer is considered a first delivery, therefore the exemption for second and subsequent deliveries does not apply. In this case, as they are completed properties and have not been used, the transfer is subject to VAT.

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