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V2166-17 21 August 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · régimen especial de grupo de entidades

Acquisition of a dominant entity allows group regime to be maintained until the year following the purchase

A query was raised regarding the effects on the group regime for entities when acquiring 100% of the shares of a dominant entity. The DGT ruled that the acquired entity may opt to join a new group as a dependent entity, with effects starting from 1 January of the following calendar year.

The question raised

Clarification of the binding ruling of June 13, 2017, number V1509-17, regarding the effects on the Special Regime for Groups of Entities as a consequence of the operation to acquire 100% of the shares of the dominant entity.

The DGT's ruling

In an acquisition of a majority stake where the dominant entity is not dissolved and becomes a subsidiary, the integration into a new group of entities shall take effect from January 1 of the calendar year following the acquisition. During the year of the transaction, the pre-existing group of entities regime may continue to be applied. The new dominant entity must communicate the composition of the group in December so that it takes effect in the following year.

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