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V1438-14 30 May 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · opción de compra

Call option premium is subject to VAT as a supply of services

A query was raised regarding whether the premium paid for a call option on real estate is subject to VAT and how it affects the taxable base of the subsequent sale. The DGT ruled that the option constitutes a supply of services and that its amount does not reduce the taxable base for the delivery of the property.

The question raised

Liability for Value Added Tax on the premium paid for the option.

The DGT's ruling

The granting of a call option on real estate used for business activities is a service subject to VAT, as it constitutes a right and not a transfer of goods. If the option is exercised, the premium paid forms part of the taxable base of the option itself and not of the transfer of the real estate. Therefore, the price of the transfer is not reduced by the amount of the premium, as each transaction has its own agreed taxable base.

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