Skip to content
Back to index
V2834-15 29 September 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · escisión parcial

The spin-off of an autonomous economic unit may be exempt from VAT

A company has requested clarification on whether the partial spin-off of its credit and real estate management activity is subject to VAT. The Directorate General for Taxes (DGT) has ruled that the transfer will not be subject to VAT if the assets constitute an autonomous economic unit capable of carrying out the activity on its own.

The question raised

Liability for Tax resulting from said spin-off.

The DGT's ruling

The transfer of a set of tangible and intangible elements is not subject to VAT if they constitute an autonomous economic unit capable of carrying out a business or professional activity by its own means. In the case of the spin-off of the management of credits and real estate, the operation shall not be subject to VAT if the organizational structure is sufficient to carry out said activity, regardless of whether all credits or real estate are transferred. If these requirements are not met, the transfer shall be taxed under the general rules.

Book your free first meeting