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V2902-19 21 October 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entrega de bienes

Judicial award of a fishing vessel is subject to VAT and may be exempt depending on its use

A query was raised regarding whether the judicial award of a fishing vessel following the compulsory enforcement of a maritime credit instrument is subject to VAT. The DGT ruled that the transaction constitutes a supply of goods subject to tax, although it may be exempt if the vessel is intended for international navigation or coastal fishing.

The question raised

Taxation of the adjudication under Value Added Tax. Taxation of the adjudication under Value Added Tax.

The DGT's ruling

The judicial adjudication of a vessel constitutes a supply of goods carried out by the former shipowner, who holds the status of entrepreneur or professional. This transaction is subject to VAT, but may be exempt if the vessel is fit for deep-sea navigation and is used for international maritime navigation or coastal fishing. The successful bidder, if an entrepreneur or professional, may issue the invoice on behalf of the taxable person in accordance with regulatory requirements.

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