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V1531-23 5 June 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sociedad de gananciales

Transfer of business ownership between spouses in a community of property is not subject to VAT

A taxpayer married under the community of property regime, who operates a hospitality business, inquired whether transferring ownership of said activity to their spouse would trigger VAT liability. The DGT ruled that this change does not constitute a cessation of activity or a transfer of assets, and therefore no taxable transaction occurs.

The question raised

1.- Liability for Value Added Tax due to the change of ownership of the activity carried out.

The DGT's ruling

In a community property regime, spouses jointly hold ownership of the entirety of the assets and the conduct of the activity. Therefore, the mere change of ownership of the activity from the community property regime to the other spouse does not constitute a cessation of economic activity, nor a transfer of assets or rights, nor an operation subject to VAT. As there is no transfer of the assets used for the activity, the regularization of the installments incurred for its acquisition is also not applicable.

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