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V2444-24 4 December 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · régimen de grupo de entidades

Transfer of most voting rights allows application of VAT group regime

A holding company enquired whether acquiring the voting rights of another entity would allow it to include that entity in its special VAT group regime. The DGT ruled that if effective control is obtained through more than 50% of voting rights and both economic and organisational links are established, the requirements are met.

The question raised

Whether the transfer of voting rights of an entity meets the subjective requirements for the application of the tax group regime provided for in Law 37/1992.

The DGT's ruling

To apply the special tax group regime, the parent entity must have effective control over the subsidiaries through a holding of more than 50% of the capital or voting rights. If the transfer of voting rights guarantees such financial control and economic and organizational links exist, the legal requirements are met. The application of the regime shall be possible from January 1 of the year following the acquisition of the rights.

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