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V2203-17 4 September 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · no sujeción

Successive transfer of a business in a single act may be outside the scope of VAT if it constitutes an autonomous economic unit

The applicant asks whether the transfer of their investment banking business in several successive phases, but as a single act, can be considered a transaction outside the scope of VAT. The DGT rules that if the transferred elements allow for the conduct of an autonomous economic activity, the transfer is not subject to VAT; intermediate operations are irrelevant provided that the first and last transfers meet the necessary requirements.

The question raised

Question posed: Whether the operation of transferring the investment banking business in different successive phases but in a single act may be considered an operation not subject to the Tax.

The DGT's ruling

For the transfer to be not subject to tax pursuant to Article 7.1 of Law 37/1992, the set of elements must allow for the conduct of an autonomous economic activity. In successive transfers carried out in a single act and under the same contract, the intermediate operations are irrelevant for the application of non-subjectivity to the first and last transfer. These must be carried out by entrepreneurs or professionals and the transferred elements must constitute an autonomous economic unit.

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