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V1524-17 15 June 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · unidad económica autónoma

Transfer of an autonomous economic unit may be exempt from VAT if the organisational structure is maintained

A civil society proposes the dissolution and transfer of its hardware and rural accommodation activities to one of its partners. The DGT examines whether this transfer constitutes an autonomous economic unit, allowing for VAT non-applicability, or if it is merely a transfer of assets.

The question raised

Liability for Value Added Tax.

The DGT's ruling

The transfer of a set of tangible and intangible elements constituting an autonomous economic unit capable of carrying out an activity by its own means is not subject to VAT. For this condition to be met, the transfer must be accompanied by an organizational structure of material and human production factors. If such a structure does not exist and it is considered a mere transfer of assets, the operation shall be subject to the tax. In the case of real estate, the exemption for the second delivery of buildings will depend on whether the property has been used by the owner for a period equal to or greater than two years following its construction.

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