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V0961-20 21 April 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · territorio de aplicación

Transfers of assets and rights of a hotel in the Canary Islands are not subject to VAT

Two companies acquired an operating hotel in Tenerife, splitting the purchase between the real estate and the remaining fixed assets. The DGT ruled that these transactions are not subject to VAT as they take place outside the territory where the tax applies.

The question raised

Question raised: Taxation of the aforementioned transactions in Value Added Tax.

The DGT's ruling

The transfers of goods and rights in the transaction are not subject to VAT, as the assets used for the hotel are located in the Canary Islands, which are outside the territory to which the tax applies. However, the transaction could be subject to the Canary Islands General Indirect Tax, the competence for resolving queries regarding which belongs to the Government of the Canary Islands.

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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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