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V2095-18 16 July 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entrega futura

Novation of a future delivery of premises requires adjustment of the VAT taxable amount

A local council was entitled to receive a future commercial premises, but following an urban planning change, it agreed to receive two different premises instead in exchange for waiving the first. The DGT has determined that the original transaction is subject to VAT and that the modification of the agreement necessitates a rectification of the taxable amount.

The question raised

Treatment for Value Added Tax purposes of the described operation.

The DGT's ruling

The delivery of a premises to be constructed by an entrepreneur constitutes an operation subject to VAT. Upon the occurrence of a novation that replaces the original obligation with the delivery of other real estate, the accrued taxable base must be modified by the corresponding amount pursuant to Article 80 of Law 37/1992. The reclassification of land to residential use as consideration is not subject to the tax.

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