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V1907-23 3 July 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · unidad económica autónoma

Transfer of an autonomous economic unit is not subject to VAT

A company has requested clarification on whether the transfer of an industrial warehouse, including its assets, liabilities, employees, and contracts, is subject to VAT. The Directorate-General for Taxes (DGT) has ruled that, as the transaction constitutes the transfer of an autonomous economic unit, it is not subject to VAT.

The question raised

The taxation of the aforementioned transfer for Value Added Tax purposes is being questioned.

The DGT's ruling

The transfer of a set of tangible and intangible elements that constitute an autonomous economic unit capable of carrying out a business activity by its own means is not subject to VAT. For non-subjectivity to apply, the set of elements must allow for the development of an autonomous economic activity at the premises of the transferor. In this case, as assets, contracts, inventory, licenses, know-how, trademarks, and employees are transferred, it is considered that the necessary organizational structure exists.

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