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V2000-18 4 July 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · comunidad de bienes

Financial compensation for excess allocation when dissolving a co-ownership is subject to VAT

A query was raised regarding whether the financial compensation received by a co-owner upon the dissolution of a co-ownership (due to receiving less land than the other party) is subject to VAT. The DGT has determined that this transfer of rights between co-owners constitutes a transaction subject to the tax.

The question raised

Question raised: Subjectivity to tax of the compensation for the excess allocation to one of the buyers upon the resolution of the co-ownership

The DGT's ruling

The resolution of the co-ownership implying that a co-owner receives a cash supplement for a smaller allocation of a share constitutes the transfer of a right for the benefit of the other co-owner. This operation must be subject to Value Added Tax. The consultant must charge the tax to the recipient of the operation through the issuance of the corresponding invoice.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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