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V1813-18 21 June 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · cese de actividad

Sale of a premises not subject to VAT if economic activity has ceased

A private individual who was renting a premises and has been removed from the Register of Entrepreneurs asks whether the sale of the property is subject to VAT. The DGT responds that if the cessation of activity is effective, the transfer is not subject to VAT but to Inheritance and Property Transfers Tax.

The question raised

Question raised: Liability for Value Added Tax on the transfer of the real estate property. If applicable, the possible application of any of the reverse charge mechanisms provided for in Article 84.One.2.e) of Law 37/1992 and the invoicing of the transaction. If the premises were to be leased again, the possible existence of a minimum lease period to consider it once again used for the purpose of the leasing activity before proceeding with its disposal.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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