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V1277-17 25 May 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · unidad económica autónoma

Transfer of property used for shopping centres is subject to VAT and does not qualify as an independent economic unit

A company acquires a property intended for shopping centres and will terminate current management contracts to seek new managers. The DGT ruled that the transaction is subject to VAT because the transfer of property without an organisational structure constitutes a mere transfer of assets.

The question raised

Treatment of the transaction under Value Added Tax is requested.

The DGT's ruling

The transfer of real estate does not constitute an autonomous economic unit if it is not accompanied by an organizational structure of material and human factors. As it is a mere transfer of assets, the non-applicability provided in Article 7.1 of Law 37/1992 does not apply. The transaction shall be subject to the tax and, as the case may be, could be exempt as a subsequent delivery of construction.

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