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V1736-14 3 July 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · cesión de marcas

Transfer of trademarks used in business activities is subject to 21% VAT and taxed as business income

An educational centre has requested a ruling regarding the taxation of the transfer of its commercial trademarks. The DGT has determined that the transaction is subject to VAT at the standard rate and, as the trademarks are used for business purposes, the income is classified as returns from economic activities.

The question raised

Taxation under Value Added Tax and Tax on Economic Activities regarding the assignment of trademarks. Furthermore, consultation is made regarding the nature for Personal Income Tax purposes of the income derived from the assignment and its subjection to withholding tax.

The DGT's ruling

The assignment of trademarks for consideration is subject to VAT at 21% as it constitutes a provision of services carried out by a business operator. In the IAE, a provisional registration in group 859 must be made if the assignment is exclusively for the right of use. For IRPF purposes, as the trademarks are assigned to the economic activity, the income is considered income from economic activities and not from movable capital. The applicable withholding tax is 21% for the 2012, 2013, and 2014 fiscal years.

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