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V1322-17 30 May 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

VAT and Excise Duty must be regularised if a vehicle for persons with disabilities is transferred before 4 years

An individual wishes to transfer a vehicle acquired at a reduced rate for persons with disabilities after inheriting it. The DGT rules that transfers made 'inter vivos' before four years from registration require the regularisation of both VAT and Excise Duty.

The question raised

The taxpayer asks whether there is an obligation to regularize the tax rate, as well as the form to be used for this purpose, the amount to be regularized and, finally, whether the reference tax rate should be 18 percent or the rate currently in force.

The DGT's ruling

The transfer by 'inter vivos' acts following a 'mortis causa' transfer before four years have elapsed from the initial registration fails to meet the requirements for exemption from Excise Duty. Regarding VAT, the transfer before the four-year period determines non-compliance with the conditions for the reduced rate of 4%. The taxpayer must repay the benefit using form 309, applying the general rate in force on the date of the original acquisition.

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