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V1712-14 3 July 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · no sujeción

Merger by absorption of a company holding only machinery and stock is subject to VAT

A query was raised regarding whether the transfer of a company whose assets are limited to machinery and stock is exempt from VAT. The DGT ruled that the transaction is subject to the tax because it does not constitute an autonomous economic unit.

The question raised

Subjectivity of the operation.

The DGT's ruling

For the transfer of a set of elements not to be subject to VAT, these must constitute an autonomous economic unit capable of carrying out a business activity by its own means. The mere transfer of goods, such as the sale of stock, does not meet this requirement. In this case, by contributing only machinery and stock, sufficient means to carry out an economic activity autonomously are not transferred.

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