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V1323-24 6 June 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · cese de actividad

Entrepreneur status maintained until patrimony liquidation, no obligation to file model 347

The DGT clarifies that entrepreneur status continues until actual patrimony liquidation, but there is no obligation to submit model 347 or model 036 when transferring business premises.

The question raised

Clarification of the binding ruling of November 16, 2022, inquiry number V2378-22, specifically regarding the non-obligation to submit Forms 036, concerning the census of entrepreneurs and professionals, and Form 347, the annual declaration of transactions with third parties.

The DGT's ruling

The status of entrepreneur or professional for VAT purposes is maintained until the effective cessation occurs, which does not take place while the liquidation of business assets or the sale of assets used for business purposes is being carried out. During this period, the taxpayer must comply with formal obligations and may deduct input tax related to said liquidation. However, as no current business activity is being exercised, there is no obligation to submit Form 347.

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