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V2710-20 4 September 2020 · SG de Impuestos sobre el Consumo Criterion in force
OTRO · comunidad de bienes

Allocation of plots following the dissolution of a community of property is subject to ITP rather than VAT if no business activity exists

A query was raised regarding whether the allocation of a plot following the dissolution of a community of property is subject to VAT or ITP/AJD. The DGT has determined that there is no VAT liability as the community is not acting as a business or professional, meaning the transaction is subject to ITP.

The question raised

Liability for Value Added Tax or for Property Transfer Tax and Documented Legal Acts regarding the transfer of one of the plots allocated to the taxpayer upon the dissolution of the community of property.

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