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V1821-23 23 June 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · régimen especial de grupo de entidades

Possibility of applying the special group of entities regime following an absorption by a branch

A controlling entity of a VAT group will be absorbed by an EU entity, with its holdings being assigned to a branch in Spain. The DGT is consulted on whether the subsidiaries can remain under the special regime under the new structure.

The question raised

Question posed: Effects on the Special VAT Group of Entities Regime as a consequence of the indicated restructuring operation.

The DGT's ruling

In a universal succession where the entirety of assets and liabilities is assigned to a newly created branch, the subsidiary companies pass to depend on a new controlling entity. This new controlling entity may apply the special group of entities regime provided it meets the legal requirements. The application agreements must be adopted by the boards of directors and may be carried out before the end of the filing period for the first corresponding individual tax return.

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