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V2208-22 21 October 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · cesión gratuita

The free transfer of electrical installations to the supplier is not subject to VAT if it is a legal duty

A company that constructs a golf course inquires whether the free transfer of electrical installations to the supply company is subject to VAT. The DGT responds that there is no tax liability if said transfer constitutes a legal duty derived from urban planning and electrical regulations.

The question raised

Question posed: Tax liability of the free transfer services of the installations for Value Added Tax.

The DGT's ruling

The free transfer of electrical installations to the distributor is not considered an operation subject to VAT if it is carried out in compliance with the legal duties established in urban planning and electrical regulations. For there to be no tax liability, the transfer must respond to the obligation to provide connection infrastructures with general networks and must not be open to the use of third parties other than the inquiring entity.

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