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V2862-17 6 November 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · no sujeción

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

An entity acting as an agent for credit institutions has queried whether the transfer of its entire business is subject to VAT. The DGT has ruled that the transaction is not subject to the tax, as it constitutes the transfer of an autonomous economic unit.

The question raised

Subjectivity of the transfer operation of a credit institution's agency business to Value Added Tax.

The DGT's ruling

The transfer of a set of tangible and intangible elements that constitute an autonomous economic unit capable of carrying out an activity by its own means is not subject to VAT. In order not to be a mere assignment of assets, the transfer must be accompanied by an organizational structure of material and human production factors. In this case, by including agency contracts, subrogation of employees, and fixed assets, the requirement of an autonomous economic unit is met.

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