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V2932-21 19 November 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · unidad económica autónoma

Transfer of a set of elements constituting an autonomous economic unit is not subject to VAT

A commercial entity has enquired whether the transfer of life insurance policies, applications, furniture, personnel, and lease and service contracts is subject to VAT. The DGT has ruled that, as the operation is accompanied by an organisational structure of production factors, it is not subject to the tax.

The question raised

Taxation under Value Added Tax.

The DGT's ruling

The transfer of tangible and intangible assets is not subject to VAT if they constitute an autonomous economic unit capable of carrying out a business activity by its own means at the premises of the transferor. 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, the transfer of policies, applications, furniture, personnel, and contracts meets these requirements.

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