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V2998-23 15 November 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entrega de bienes

Sale of used machinery by a municipal association is subject to 21% VAT

A municipal association has requested clarification on whether the sale of a second-hand motor grader and a truck is subject to VAT. The DGT has ruled that the transaction is subject to the tax, as it is carried out for non-taxable consideration and does not fall under the exemptions for Public Administrations.

The question raised

For the purposes of Value Added Tax, the taxability of the sale and, where applicable, the applicable tax rate.

The DGT's ruling

The supply of goods carried out by a community of property through non-tax consideration is subject to VAT. The transaction shall be taxed at the general rate of 21% provided that the non-subjectivity under Article 7.8 of Law 37/1992 is not applicable. Notwithstanding, the exemption under Article 20.One.25 could apply if the acquisition of the goods had resulted in the total exclusion of the right to deduct for the transferor.

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