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V2961-14 3 November 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeción

Transfer of land requiring new urbanisation is subject to but exempt from VAT

The applicant inquires about the taxation of the transfer of land with unconsolidated urban use that requires new urbanisation and contains buildings intended for demolition. The DGT determines that the transaction is a business operation and is therefore subject to VAT, although the corresponding exemption applies.

The question raised

Taxation of the transfer of the aforementioned land by the consulting entity.

The DGT's ruling

The transfer of land which, due to a change in planning, requires a new urbanization process, is subject to VAT as it constitutes a business operation. However, the delivery is exempt pursuant to Articles 20.One.20º and 22 of Law 37/1992. This exemption remains applicable even if there are buildings that must be demolished due to incompatibility with the new use. The taxable person may waive the exemption if the acquirer is a taxable person with the right to full deduction, in which case the acquirer shall be the taxable person.

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