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V2225-17 5 September 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · unidad económica autónoma

Transfers of assets without an organisational structure that do not constitute an economic unit are subject to VAT

A company inquired whether the acquisition of a hotel property, licences, and fixed assets constitutes an autonomous economic unit exempt from VAT. The DGT ruled that, as there is no organisational structure in place to carry out an autonomous economic activity by the transferor, the transactions are subject to tax.

The question raised

Subjectivity of said operations to Value Added Tax.

The DGT's ruling

Non-applicability due to the transfer of an economic unit requires that the transferred elements allow for the development of an autonomous activity by the transferor. If the transfer is a mere assignment of assets without an organizational structure of production factors, it shall be subject to VAT. In the specific case, the transfer of the real estate, licenses, and fixed assets does not constitute an autonomous economic unit and is taxed independently.

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