Back to index
V2574-14 1 October 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · devengo

VAT accrual occurs upon temporary occupation of properties and the standard rate applies

An entity requested clarification on when VAT accrues for the handover of premises that a City Council will occupy temporarily prior to purchase, and which tax rate applies. The DGT ruled that accrual occurs upon occupation and, as the buildings lack a first occupation licence, the standard rate applies.

The question raised

1.- Accrual. 2.- Applicable tax rate.

The DGT's ruling

The accrual of the supply of goods occurs when the good is made available to the acquirer, which in this case occurs upon temporary occupation. If advance payments exist, the accrual occurs at the time of collection. The applicable tax rate is the general rate, as the properties are not considered suitable for housing due to the lack of a first occupancy license at the time of accrual.

Book your free first meeting