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V1984-20 17 June 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · concesión administrativa

VAT liability for the transfer of forest rights depends on the legal nature of the property and the transfer title

A grouping of municipalities has requested a ruling regarding the VAT liability of transferring hunting and forestry rights from public utility forests. The DGT clarifies that liability will depend on whether the transfer is carried out via an administrative concession or through a contract of a civil or administrative nature.

The question raised

Subjectivity to Value Added Tax of the described operation.

The DGT's ruling

If the transfer of forests or uses is carried out through an administrative concession or authorization as they are public domain assets, it shall not be subject to VAT. If it is implemented through a contract of a civil or administrative nature as they are patrimonial assets, the operation shall be subject to the tax. In the case of hunting uses, the exemption for land leases does not apply, whereas the lease of pastures may be subject to but exempt from the tax.

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