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V2166-14 5 August 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · unidad económica autónoma

Transfer of a client portfolio is subject to VAT if it does not constitute an autonomous economic unit

A consultancy firm inquired whether the sale of its client portfolio and the transfer of two employees were exempt from VAT. The DGT ruled that the transaction is subject to tax because the client portfolio does not, in itself, constitute an autonomous economic unit.

The question raised

Whether the transfer is subject to Value Added Tax.

The DGT's ruling

For a transfer of assets to be exempt from VAT, it must constitute an autonomous economic unit capable of carrying out an activity by its own means. The transfer of a client portfolio is not considered an autonomous economic unit in isolation, and the inclusion of some employees does not change this conclusion. Therefore, the transaction is subject to the tax.

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