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V2488-17 4 October 2017 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IVA · unidad económica autónoma

Transfer of an autonomous economic unit is exempt from VAT, but real estate is subject to ITP

A company has requested clarification on whether the acquisition of a service station (including real estate, staff, stock, and facilities) is subject to VAT or ITP. The DGT has ruled that the transaction is not subject to VAT as it constitutes a transfer of an economic unit, although the real estate included is subject to ITP.

The question raised

First. Whether said operation is subject to Value Added Tax or to Transfer Tax at the rate of 8% and, if in both cases, whether the total of the operation or part of it would be subject to one tax and another part to another.

The DGT's ruling

The transfer of a set of elements constituting an autonomous economic unit is not subject to VAT. However, the real estate included in said transfer shall be subject to the transfer of assets modality of the ITP. Movable property, on the other hand, shall be subject neither to VAT nor to the transfer of assets modality of the ITP.

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