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V2940-18 14 November 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · no sujeción

Transfer of a branch including assets, liabilities and staff is not subject to VAT

A banking entity has enquired whether the transfer of its Spanish branch to a new company constitutes an operation not subject to VAT. The DGT has ruled that, as the transfer includes assets, liabilities and staff, an autonomous economic unit is being transferred.

The question raised

Whether the insurance business transfer operation can be considered an operation not subject to the 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 the Tax. 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, as the branch is transferred with all its assets, liabilities, and personnel, the requirement of an autonomous economic unit is met.

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