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V2021-23 11 July 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · unidad económica autónoma

Transfer of a solar farm may be exempt from VAT if it constitutes an autonomous economic unit

A company has requested clarification on whether the transfer of a solar farm to another company is subject to VAT. The DGT explains that it will depend on whether the transfer includes an organisational structure and sufficient elements to constitute an autonomous economic unit, or if it is merely a transfer of assets.

The question raised

Whether the transfer under consultation is subject to Value Added Tax.

The DGT's ruling

The transfer shall not be subject to VAT if the transferred elements constitute an autonomous economic unit capable of carrying out an activity by its own means. If the transfer consists only of detachable solar panels without an organizational structure, it shall be subject to the tax. In the event that it is subject to tax and constitutes a building, the exemption for second deliveries of buildings could apply.

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