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V0891-18 6 April 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · unidad económica autónoma

Transfer of assets from a business without organisational structure is subject to VAT

A company requested clarification on whether the transfer of assets from a coffee and ice cream parlour was exempt from VAT. The DGT ruled that, as the transaction did not include employees or the premises lease, it constitutes a mere transfer of goods subject to tax.

The question raised

Question posed: Liability of the operation for Value Added Tax.

The DGT's ruling

For a transfer to be exempt from VAT, the elements must constitute an autonomous economic unit capable of carrying out an activity by its own means. If the transfer does not include an organizational structure of material and human production factors, it is considered a mere transfer of assets subject to tax. In this case, as neither workers nor the premises contract are transferred, the operation is subject to VAT for each element independently.

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What is published here, applied to a company or a specific case. The first meeting is free.

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