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V2851-19 15 October 2019 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IVA · transmisión de valores

Transfer of securities via exchange or in-kind dividends is exempt from VAT and ITPAJD if there is no intent to evade tax

An entity sought clarification on whether the exchange of securities and the distribution of in-kind dividends of shares in real estate companies were tax-exempt. The DGT ruled that the transfer of securities is exempt from VAT and ITPAJD, unless an intention to evade real estate transfer tax is demonstrated.

The question raised

Application of article 314 of the TRLMV to the aforementioned securities exchange and dividend distribution operations.

The DGT's ruling

The transfer of securities is exempt from VAT and ITPAJD, unless there is an intent to evade the real estate transfer tax. To avoid the presumption of evasion, the real estate must be used for business activities in accordance with VAT regulations. If the real estate is used for the activity, the presumption of intent to evade does not apply and the transaction maintains its exemption. Nevertheless, the Administration may determine the intent to evade based on the circumstances of the transaction.

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