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V1192-24 24 May 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · permuta

Exchange of commercial premises for future apartments may be subject to VAT or ITP depending on the status of the transferor

A developer has requested clarification regarding the taxation of exchanging commercial premises for the construction of apartments. The DGT explains that VAT applicability depends on whether the owners of the premises are business entities and whether the works constitute rehabilitation, while also analysing the coexistence with ITP.

The question raised

Question raised: Taxation for the purposes of Value Added Tax and Transfer Tax on Onerous Property Transfers and Documented Legal Acts regarding the exchange carried out.

The DGT's ruling

The delivery of commercial premises is subject to VAT if the transferor is a business or professional and the premises are used for their activity. If the works are rehabilitation works, the delivery of the premises could be exempt, whereas the delivery of the apartments will be a first delivery subject to VAT. The delivery of the premises constitutes a payment in kind towards the future building, with VAT accruing at the time of the delivery of the premises. Regarding Transfer Tax, real estate transfers that enjoy an exemption from VAT will be subject to the modality of onerous property transfers.

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