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V1554-22 28 June 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · transmisión de cartera

Transfer of an insurance portfolio is subject to VAT and does not benefit from the insurance operations exemption

An insurance agent has enquired whether the transfer of their insurance portfolio due to retirement is subject to or exempt from VAT. The DGT has determined that the sale of the portfolio is a taxable transaction and is not considered an exempt insurance operation.

The question raised

Liability and, where applicable, exemption of said transaction for Value Added Tax purposes.

The DGT's ruling

The transfer of an insurance portfolio by a professional is a transaction subject to VAT when carried out in the course of their business activity. It is not an exempt insurance or reinsurance transaction because, according to the CJEU, an insurance transaction requires a contractual relationship between the provider and the insured, a requirement that is not met in the sale of a portfolio to another entity.

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