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V2682-14 8 October 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · no sujeción

Transfer of a beauty salon business may be exempt from VAT if the premises are leased to the purchaser

A query was raised regarding whether the transfer of a beauty salon—comprising machinery, clientele, and furniture, but excluding the premises (which are to be leased to the buyer)—is subject to VAT. The DGT ruled that the transaction is not subject to tax if the lease allows the purchaser to have lasting use of the property for the business activity.

The question raised

Subjectivity of the transaction.

The DGT's ruling

The transfer of an autonomous economic unit is not subject to VAT even if the ownership of the real estate is not transferred. The fact that the premises are provided through a lease agreement does not prevent non-subjectivity, provided that it can be deduced from said agreement that the acquirer can dispose of the real estate in a lasting manner for the conduct of the economic activity. It must be analyzed whether the real estate is necessary for the activity and whether its provision allows for the continuity thereof.

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