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V2381-17 19 September 2017 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IVA · transmisión de valores

VAT regulations prevail when determining property allocation in the transfer of securities

A taxpayer inquired whether the VAT or Personal Income Tax (IRPF) criteria for property allocation should be applied when determining exemption eligibility for the transfer of securities by a real estate company. The Directorate General for Taxes (DGT) ruled that VAT regulations must prevail as they concern indirect taxation.

The question raised

To determine whether, for the purposes of the provisions of Article 314 of the Securities Market Law, Legislative Royal Decree 4/2015, of October 23, the requirement of being used for business or professional activities in relation to a leasing activity must be interpreted in accordance with Value Added Tax regulations or with Personal Income Tax regulations.

The DGT's ruling

For the purposes of Article 314 of the Securities Market Law (LMV), the concept of assets used for business purposes must be that provided for by VAT regulations. This is because the provision regulates the transfer of securities in indirect taxation (VAT and ITPAJD) and not in direct taxation. For the sake of consistency, the definition of assets forming part of the business assets according to VAT applies, whether the transaction is subject to VAT or ITPAJD.

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