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V2081-22 29 September 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · unidad económica autónoma

The transfer of a 'run-off' insurance portfolio is not subject to VAT if it constitutes an autonomous economic unit

A branch of a Swiss entity transfers a portfolio of medical liability policies in a 'run-off' situation to an Irish branch. The DGT determines that the transaction is not subject to VAT if the transferred elements allow the activity to be carried out autonomously.

The question raised

Question raised: Taxation under Value Added Tax.

The DGT's ruling

The transfer of tangible and intangible elements is not subject to VAT if they constitute an autonomous economic unit capable of carrying out an activity by its own means at the premises of the transferor. It is not necessary to transfer the premises or the intellectual property if the assigned assets and liabilities, together with the structure of production factors, allow the autonomous functioning of the unit. In this case, the assignment of policies, management contracts, and employees appears sufficient for non-subjectivity.

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