Skip to content
Back to index
V2429-14 15 September 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · segunda entrega de edificaciones

Transfer of commercial premises may be exempt from VAT if leased for more than two years

The taxpayer inquires about VAT liability regarding the purchase of leased commercial premises and the tax status of the resulting community of property. The DGT rules that while the transaction is subject to VAT, it may be exempt if the requirements for a second delivery of buildings are met.

The question raised

Liability for Value Added Tax and, where applicable, exemption.

The DGT's ruling

The transfer of commercial premises is a transaction subject to VAT if the transferor acts as an entrepreneur or professional. The transaction shall be exempt if it constitutes a second or subsequent delivery of a building, which occurs if the property has been used uninterruptedly by its owner or tenants for at least two years. If the resulting community of property jointly assumes the risk and the management of resources for the leasing activity, it shall hold the status of a taxable person for the tax.

Book your free first meeting