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V1464-14 3 June 2014 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · transmisiones onerosas

Acquisition of goods from private individuals is subject to ITPAJD, regardless of the purchaser's status

A jewellery company has enquired whether the purchase of items from private individuals is subject to VAT or ITPAJD. The DGT has ruled that the determination of the tax depends exclusively on the status of the transferor and not the purchaser.

The question raised

Whether the acquisition from private individuals is subject to Value Added Tax or to the Tax on Property Transfers and Documented Legal Acts.

The DGT's ruling

The distinction between VAT and ITPAJD is made solely by considering the status of the transferor of the good or right. If the transferor is an entrepreneur or professional acting in the course of their activity, the transaction is subject to VAT. If the transfer is carried out by a private individual, it is subject to ITPAJD, regardless of whether the acquirer is an entrepreneur or a private individual.

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