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V1106-18 27 April 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · unidad económica autónoma

Transfer of assets exempt from VAT if they constitute an autonomous economic unit within the transferor

A query was raised regarding whether the acquisition of management, administration, custody contracts, databases, and web portal usage rights constitutes an autonomous economic unit exempt from VAT. The DGT ruled that exemption depends on whether the transferred elements allow for the independent conduct of an activity by the transferor.

The question raised

Whether the transferred elements constitute an autonomous economic unit for the purposes of applying the non-taxability provision of Article 7.1 of Law 37/1992.

The DGT's ruling

For the transfer to be exempt from VAT, the elements must constitute an autonomous economic unit capable of carrying out a business or professional activity on its own merits at the premises of the transferor. It is required that the set of elements includes an organizational structure of material and human production factors. If the transfer is a mere assignment of goods or rights without such a structure, it shall be subject to the tax on an individualized basis.

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