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V3012-14 5 November 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entrega de bienes

Leasing with binding transfer clause deemed a supply of goods and allows waiver of exemption

An entity acquires real estate to lease it to a company operating a timeshare system, with a commitment to final transfer. The DGT analyses the classification of the transaction, the possibility of waiving the exemption for second deliveries, and the right to deduction.

The question raised

Treatment of the operation for Value Added Tax purposes.

The DGT's ruling

A lease with a transfer of ownership clause binding on both parties is considered a supply of goods. As these are second or subsequent supplies, they are exempt, but the consultant may waive the exemption if the acquirer is entitled to full deduction. In this case, the supply is considered subject to VAT through the reverse charge mechanism. The lessee carries out taxable and non-exempt operations by providing complementary hospitality services.

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