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V2798-17 30 October 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · unidad económica autónoma

Sale of solar parks subject to VAT, unless deemed a second building delivery, and to ITPAJD if VAT exempt

A company sought clarification on whether the sale of six independent photovoltaic plants was subject to VAT or ITPAJD. The DGT ruled that the transfer is subject to VAT, but may be exempt if classified as a second building delivery, which could subsequently trigger ITPAJD liability.

The question raised

First question raised: Taking into account that the sale of six independent photovoltaic plants is going to proceed, and two other plants will remain in the company, the consulting entity considers whether the sale of the six independent solar parks is subject to Value Added Tax or, where applicable, to the Tax on Onerous Transfers of Property.

The DGT's ruling

The transfer of the plants does not constitute an autonomous economic unit without technical-administrative support, and is therefore subject to VAT. Solar parks are considered buildings, which allows for the exemption of the second delivery of buildings, unless expressly waived. If the VAT exemption is waived, the operation shall be subject to this tax. On the other hand, as they are real estate assets, the transfer shall be subject to ITPAJD if the delivery of goods is exempt from VAT or if the transfer of business assets is not subject to VAT.

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