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V2899-19 21 October 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · no sujeción

Contribution of real estate with subrogation in management contracts may be exempt from VAT

A financial entity and its subsidiaries seek advice on VAT treatment in a restructuring involving the contribution of real estate to new companies and the subsequent transfer of shares. The DGT examines exemption due to transfer of economic unit and exemption in share transfers.

The question raised

Taxation under Value Added Tax.

The DGT's ruling

The contribution of real estate together with subrogation in management contracts may not be subject to VAT if it constitutes an autonomous economic unit in the transferor. If the transfer of real estate were subject to tax, the exemption for subsequent deliveries of buildings could apply. The transfer of shares is exempt, unless the securities market anti-avoidance clause applies. In the case of a holding company, liability will only arise if it is a mixed holding company with the status of an entrepreneur or professional.

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