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V2553-14 30 September 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IVA · unión temporal de empresas

Award of a building from a UTE to a member is VAT liable; dissolution enjoys ITPAJD exemption

A UTE engaged in a mortuary-crematorium project seeks advice on VAT treatment of awarding the works to its members during dissolution. The DGT confirms that delivery of the building to a member is VAT liable and examines the application of Corporate Tax and the ITPAJD exemption.

The question raised

1. In relation to Value Added Tax, the following questions are raised:

The DGT's ruling

The allocation of a building promoted by a Joint Venture (UTE) to one of its members is considered a first supply of goods subject to and not exempt from VAT. The member may deduct the tax provided that the invoicing requirements are met and they are recorded as the recipient. In Corporate Income Tax, the difference between the market value and the book value of the assets transferred upon dissolution is included in the Joint Venture's taxable base for imputation to its members. Regarding ITPAJD, the dissolution of the Joint Venture is exempt if it meets the requirements of Law 18/1982, but any excess in allocation could be taxed as onerous transfers of assets.

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