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V2721-14 10 October 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · unidad económica autónoma

Transfer of a bar business is not subject to VAT if it constitutes an autonomous economic unit

A query was raised regarding whether the acquisition of all assets and rights of a bar (machinery, furniture, licences, etc.) is subject to VAT. The DGT ruled that, as an organisational structure capable of carrying out an activity in its own right is being transferred, the transaction is not subject to the tax.

The question raised

Liability for Tax on the transfer of a bar business.

The DGT's ruling

The transfer of a set of tangible and intangible elements that form an autonomous economic unit capable of carrying out a business activity by its own means is not subject to VAT. The transfer of the entire assets is not necessary, provided there is a commercial establishment or an autonomous part of a company. In this case, the transfer of the assets of a bar appears to constitute a sufficient organizational structure for the development of an autonomous economic activity, which constitutes a non-subject operation.

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