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V1894-20 11 June 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · no sujeción

Transfer of a savings life insurance business is not subject to VAT if it constitutes an autonomous economic unit

The applicant asks whether the transfer of their savings life insurance business to an insurance company is subject to VAT. The DGT rules that it will not be subject to the tax if the transferred elements allow for the conduct of an autonomous economic activity.

The question raised

Whether the transfer of said business is an operation subject to Value Added Tax.

The DGT's ruling

The transfer of a set of tangible and intangible elements is not subject to VAT if they constitute an autonomous economic unit capable of carrying out a business activity by its own means. In this case, the elements of the savings-life business are accompanied by the necessary organizational structure of production factors. Therefore, the operation shall not be subject to Value Added Tax.

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