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A company asks whether it can renounce VAT exemption on the sale of a commercial property. The DGT confirms this is possible if the buyer is a taxable party entitled to full deduction.
Question raised: Application of the reverse charge mechanism in the transfer of the premises insofar as the acquirer is a business person.
The transferor may waive the exemption on second and subsequent deliveries of buildings if the acquirer is a taxable person acting in the course of their activities and is entitled to full tax deduction. In this case, the acquirer shall be the taxable person for the transaction. The waiver must be communicated expressly and reliably to the acquirer, who must prove their status as a taxable person entitled to full deduction.
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