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V2620-17 13 October 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · empresario o profesional

Transfer of a warehouse may be subject to VAT if the transferor is a business owner and waives the exemption

An inquirer asks whether the purchase of an industrial warehouse, following a prior lease by the seller, is subject to VAT. The DGT explains that liability depends on whether the seller is a business owner, whether the property is used for their business activities, and whether the exemption for second deliveries is applied or waived.

The question raised

1.- Whether said acquisition would be subject to Value Added Tax. 2.- For how long the transferor would have to be the lessor of the warehouse to acquire the status of businessperson or professional for Value Added Tax purposes. 3.- Taxation of the transfer if the lease prior to the transfer were a lease with an option to purchase.

The DGT's ruling

The transferor shall be considered a business entity if they carry out the activity of a lessor and the real estate property is used for their business activity, without any minimum lease period being required. The transfer of the warehouse could be exempt as it constitutes a second delivery of a building, but the acquirer may waive said exemption if they are entitled to the deduction. If the exemption is waived, the transaction shall be subject to VAT and the inquirer shall be the taxable person. A lease agreement with an option to purchase does not change this treatment if the exclusions from the exemption are not met.

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