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V1334-16 31 March 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · autoconsumo de bienes

Reclassifying rental properties for partner use triggers VAT self-supply of goods

A real estate developer allocates one of its newly built properties for the free use of its partners. The DGT determines that this constitutes a self-supply of goods due to a change in the differentiated sector and analyses the taxation of the subsequent transfer of the property.

The question raised

Treatment of operations for Value Added Tax purposes; consequences of the subsequent transfer of the real estate.

The DGT's ruling

The transition of dwellings from the development sector to the leasing sector constitutes self-consumption of goods pursuant to Article 9.1.c) of Law 37/1992. The tax base shall be the cost of the goods or services used to obtain them and the applicable rate shall be 10%. The subsequent transfer of the dwelling to the person who has used it shall not be exempt, as self-consumption does not exhaust the initial supply. Furthermore, if it is transferred within the adjustment period, a single adjustment of deductions must be carried out.

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