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V2528-23 21 September 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · unidad económica autónoma

Transfer of assets from a beach bar without staff is subject to VAT as it does not constitute an economic unit

An individual has enquired whether the transfer of three administrative concessions, a building, furniture, and machinery to a commercial entity is subject to VAT. The DGT ruled that the transaction is subject to the tax because the absence of staff prevents the assets from constituting an autonomous economic unit.

The question raised

Whether said operations would be subject to Value Added Tax.

The DGT's ruling

The transfer does not constitute an autonomous economic unit as it does not include human resources, and is therefore considered a mere transfer of goods subject to VAT. The transfer of the real estate concession is a supply of goods subject to the tax, although it could be exempt if it is a second supply of a building after two years of use. The other material elements are taxed at the general VAT rate as a supply of goods.

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