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V1817-17 11 July 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · autoconsumo

Changing property use from technical services to residential leasing may trigger VAT-liable self-supply

A technical architect intends to repurpose a property they own for residential leasing following their retirement. The DGT has ruled that this constitutes self-supply due to a change in the differentiated sector and examines the application of the VAT exemption for residential leasing.

The question raised

Liability and exemption for Value Added Tax.

The DGT's ruling

The change of use of a property from technical architect activities to residential leasing constitutes self-consumption of goods due to a change in a differentiated sector, as these are activities with different CNAE groups and deduction regimes with a difference exceeding 50 points. Said self-consumption operation shall be subject to VAT, although the exemption for the second delivery of a building could apply. The subsequent leasing of the dwelling shall be exempt if the lessee is a final consumer and does not carry out a business or professional activity.

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