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V1981-17 21 July 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entrega de bienes

Sale of a transport vehicle by a professional is subject to VAT at the standard rate of 21%

A transport professional asks whether the sale of her vehicle is exempt from VAT because she was unable to deduct the tax upon purchase. The DGT rules that the transaction is subject to tax and the standard rate must be applied.

The question raised

Tax treatment of the transfer of the vehicle carried out by the applicant.

The DGT's ruling

The exemption under Article 20.One.25º of Law 37/1992 does not apply because the impossibility of deducting the tax upon acquisition does not derive from the limitations set forth in Articles 95 and 96. The delivery of the vehicle is subject to VAT and the tax amount must be charged at the general tax rate of 21 percent.

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