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V2442-20 16 July 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · unidad económica autónoma

Transfer of a solar photovoltaic installation is subject to VAT as it does not constitute an autonomous economic unit

An individual producing electricity through a solar installation intends to transfer it to a company. The DGT has ruled that the transaction is subject to VAT because the installation, on its own, does not constitute an autonomous economic unit without the common elements of the solar park and technical support.

The question raised

Taxation of the operation for the purposes of Value Added Tax and Transfer Tax and Documented Legal Acts.

The DGT's ruling

The transfer of elements of a solar installation is not exempt from VAT under the rule of the autonomous economic unit if it does not include the common elements and services of the solar park nor technical-administrative support. Likewise, solar panels are not considered buildings as they can be dismantled without impairment, therefore the exemption for second deliveries of buildings does not apply. The operation must be taxed at the general rate of 21%.

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