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V1229-17 18 May 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · comunidad de bienes

Allocation of property from a community of property to its members constitutes a supply of goods subject to VAT

A community of property operating a leased premises ceases its activity so that each member can manage it individually. The DGT rules that this allocation is a supply of goods subject to VAT and analyses the potential application of exemptions.

The question raised

Taxation under Value Added Tax.

The DGT's ruling

The allocation of real estate from a community of property to its members, following the cessation of its business activity, is classified as a supply of goods subject to VAT if the community was a taxable person and the real estate formed part of its business assets. This transaction may be exempt pursuant to Article 20.One.22 of Law 37/1992, although the taxable person may waive such exemption if the acquirer is a taxable person with the right to deduction. In the event of a waiver, the supply shall be subject to the tax.

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