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V2509-14 24 September 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · renuncia a la exención

Purchaser of commercial premises must declare VAT if the transferor waives exemption, with potential offset against deductible tax

An individual purchases commercial premises for leasing purposes, and the seller waives the VAT exemption. The DGT rules that the buyer becomes the taxable person under the reverse charge mechanism and must declare the transaction.

The question raised

Question posed: A request for confirmation as to whether the tax liability must or must not be paid.

The DGT's ruling

If the transferor correctly waives the exemption, the transferee becomes the taxable person for the tax. The transferee must settle the tax accrued in the tax return for the period of the transfer. The tax shall only not be paid if the accrued tax liability is offset by the deductible amount in the same tax return.

Apply this to a real case

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