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V0980-22 4 May 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · recargo de equivalencia

Inability to waive VAT exemption on commercial premises purchase for taxpayers under the equivalence surcharge regime

A professional subject to the equivalence surcharge regime intended to purchase the premises where they conduct their business. The DGT has ruled that, as they are not entitled to VAT deductions, they cannot waive the exemption applicable to the second transfer of buildings.

The question raised

To determine whether, in accordance with the provisions of the Value Added Tax Act, the inquirer cannot acquire the premises for the reasons stated by the owner of the premises.

The DGT's ruling

The second or subsequent delivery of buildings is exempt from VAT. The transferor may waive this exemption if the transferee is a taxable person with the right to deduction. However, persons subject to the equivalence surcharge regime do not have the right to deduct input VAT. Therefore, the inquirer cannot be the subject of a waiver of exemption for the transaction to be subject to VAT.

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